What are the consequences if I submit my advance VAT return too late?
October 25, 2023 | 45,00 EUR | answered by Oliver Götzinger
Dear tax advisor,
I am Gertrud Hagedorn and I operate a small business in the online trading sector. In the past, I have always submitted my VAT returns on time, but this time I unfortunately missed the deadline. Now I am worried about the potential consequences for me and my business.
I have heard that late submission of the VAT return can result in late payment interest. Is this true? How high are these interest rates and for how long do I have to pay them? Are there also fines or penalties to be paid? What impact does it have on my input tax refund if the VAT return is submitted late?
Furthermore, I wonder if I should contact the tax authority to explain the late submission of the VAT return and to avoid any potential consequences. Are there ways to avoid such mistakes in the future or to be informed in a timely manner about important deadlines?
I would greatly appreciate your assessment and advice so that I can clarify the situation as best as possible and mitigate any potential consequences. Thank you in advance for your help.
Best regards,
Gertrud Hagedorn.
Dear Mrs. Hagedorn,
Thank you for your inquiry regarding the topic of advance VAT return and the possible consequences of late submission. As a tax advisor specializing in VAT, I am happy to advise you on your questions.
Yes, it is correct that late submission of the advance VAT return can incur default interest. The current rate of default interest is 0.5% per month of the delayed payment. The interest is due for each month or part thereof in which the advance VAT return was not submitted. Therefore, it is advisable to submit the return as soon as possible to keep the interest as low as possible.
In addition to default interest, penalty payments or fines may also be imposed if the advance VAT return is not submitted on time. The amount of penalty payments can vary depending on the severity of the violation. Therefore, it is important to submit the return promptly and, if necessary, contact the tax authorities to avoid any penalties.
Regarding the input tax refund, late submission of the advance VAT return can lead to delays in the reimbursement of input tax. It is therefore important to submit the return on time to avoid potential liquidity constraints.
It is advisable to contact the tax authorities and explain the reason for the late submission of the advance VAT return. Often, the tax authorities are understanding if it is a one-time mistake. It may also be helpful to develop a strategy to avoid such mistakes in the future, for example by setting reminders or using software for deadline monitoring.
I hope that this information has been helpful to you. If you have any further questions, please do not hesitate to contact me.
Sincerely,
Oliver Götzinger
