Can I also claim trade tax retroactively?
August 18, 2023 | 40,00 EUR | answered by Eva Heuser
Dear tax consultant,
my name is Andrea Kock and I have been running a small event management company for four years. Unfortunately, I have neglected to submit business tax returns so far, as I am not sufficiently familiar with the topic and have continuously postponed it. Now I am worried if I can also claim business tax retroactively and how I should proceed best.
I have regularly submitted my income tax returns and correctly paid the sales tax. However, I am unsure if I can still register and pay the business tax for the past years retroactively. I do not want to encounter legal problems and am concerned about how to best handle this situation.
Could you please tell me if it is possible to claim business tax retroactively and how I should proceed? Are there any possible sanctions or penalties that I could face? I would like to rectify everything properly and correctly to avoid any further issues.
Thank you in advance for your support and advice.
Best regards,
Andrea Kock
Dear Mrs. Kock,
Thank you for your inquiry regarding trade tax. It is understandable that you are concerned if you have missed submitting the trade tax declarations so far. But do not worry, I will be happy to help you and explain how you can proceed best.
First of all, it is important to know that trade tax is an annual tax to be paid on the profits of businesses. Even if you have not submitted any trade tax declarations so far, it is possible to claim them retroactively. However, you should act quickly to avoid possible sanctions or penalties.
To catch up on the trade tax retroactively, I recommend that you contact the responsible tax office immediately. There you can make a voluntary disclosure and submit your missing trade tax declarations. In general, the tax office will not impose any criminal consequences with a voluntary disclosure if you actively approach them and admit your omission.
It is important that you collect and prepare all the necessary documents for the trade tax declarations of past years. These include your profit and loss statements, your balance sheets, as well as all relevant receipts and evidence. The more accurate and complete your documents are, the smoother the process of catching up on the trade tax declarations will be.
In general, you will need to submit a separate trade tax declaration for each year you want to catch up on the trade tax. You may incur additional tax payments as the trade tax is calculated retrospectively. Therefore, it is advisable to also prepare for potential financial burdens.
In summary, it is possible to claim trade tax retroactively, but it is important to act quickly and contact the tax office. By making a voluntary disclosure and submitting all the necessary documents, you can avoid possible sanctions or penalties.
I hope this information helps you and I am happy to assist you with any further questions.
Best regards,
Eva Heuser
