What happens if I submit the advance tax return late?
February 23, 2024 | 40,00 EUR | answered by Felix Schönecker
Dear tax consultant,
I am Peter Czakaj and I have a small business that I manage independently. In the past, I have always submitted my VAT returns on time. Unfortunately, this month I was unable to submit the return on time due to time constraints. I am now worried about what could happen if I submit the VAT return late.
I am aware that the VAT return in Germany must be submitted monthly or quarterly, depending on the amount of sales. I am concerned that I may have to pay a penalty or late fees if the return is submitted late. I want to avoid any financial losses for my company and therefore would like to find a solution as soon as possible.
Could you please explain to me what consequences I may face if I submit the VAT return late? Are there ways to avoid or minimize the penalty? I would greatly appreciate your help and expertise in this matter.
Sincerely,
Peter Czakaj
Dear Peter Czakaj,
Thank you for your message and your trust in my expertise as a tax advisor. I understand your concern regarding the timely submission of your VAT return. I would be happy to assist you in this matter and provide you with the possible consequences and solutions.
Submitting your VAT return late can indeed lead to financial consequences. In Germany, there is a late filing fee that is imposed when the advance return is submitted late. The amount of the late filing fee depends on the amount of VAT that was not paid on time. Depending on the duration of the delay, late payment interest may also apply.
To avoid or minimize these penalties, I recommend that you submit the late VAT return as soon as possible. The sooner you act, the lower the penalties are likely to be. It is also advisable to inform the tax office of the reason for the late submission. In some cases, the tax office may show understanding for your situation and reduce the penalties.
Furthermore, you can take measures in the future to ensure that you can submit your VAT return on time. This includes better time management and organization of your financial records, as well as the use of digital tools to facilitate accounting.
In conclusion, it is important to communicate transparently with the tax office and address any issues early on. As a tax advisor, I am here to support you and help you keep your tax matters in order.
I hope that my response has been helpful to you and I am available to answer any further questions you may have.
Best regards,
Felix Schönecker
