VAT advance return: obligations for the self-employed

Anyone providing VAT-liable services must report and pay the VAT to the tax office regularly. This is done via the VAT advance return. How often it is due depends on the amount of tax. Small businesses may under certain conditions be exempt.

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Businesses must file VAT advance returns electronically and make the advance payment (§ 18 UStG). The rhythm, monthly, quarterly or annually, depends on the amount of tax from the previous year.

Anyone using the small-business rule shows no VAT and usually does not have to file advance returns. In the advance return you can offset input VAT you have paid.

What you should do now

1
1. Clarify the obligation
Check whether you are VAT-liable or use the small-business rule.
2
2. Determine the rhythm
Clarify whether you must file monthly, quarterly or annually.
3
3. Meet deadlines
Submit the advance return electronically and on time (permanent deadline extension possible).
4
4. Offset input VAT
Deduct input VAT paid from the VAT collected.

How to spot the scam

Advance returns are filed late (a late-filing surcharge threatens).
The small-business rule is applied incorrectly.
Input VAT is not claimed or is claimed incorrectly.

Frequently asked questions

Who must file a VAT advance return?

In principle every business providing VAT-liable services must file the advance return electronically and pay the tax (§ 18 UStG). Small businesses using the small-business rule are usually exempt from this.

How often must I file?

This depends on the previous year's VAT: monthly for higher tax, otherwise quarterly; in certain cases the annual return suffices. Start-ups often file monthly at first. With a permanent deadline extension you can gain more time.

What is input VAT?

The VAT you yourself paid when purchasing for your business. You can deduct this in the advance return from the VAT you have collected. You only pay the difference or have it refunded if the input VAT predominates.

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General information for self-help, not legal advice (RDG). In case of a high loss or uncertainty: contact a consumer advice center or a lawyer.