What are the penalties for submitting a late German VAT return?

Penalties for Submitting a Late German VAT Return

The German Value Added Tax (VAT) is a consumption tax that is applied to most goods and services sold in Germany. 

Businesses registered for VAT in Germany must file monthly or quarterly VAT returns and pay the VAT due. If a return is filed late, there are penalties. The amount of the penalty depends on how late the return is filed and whether or not the taxpayer has a history of late filing.

• Late filing penalty: A late filing penalty of 10% of the VAT due is imposed if the return is filed more than one month after the deadline. The penalty is capped at €25,000.
• Late payment penalty: A late payment penalty of 0.25% of the VAT due is imposed per month that the payment is late.

In addition to the penalties listed above, the tax authorities may also impose additional penalties, such as:

• A penalty for intentional or negligent disregard of the VAT law.
• A penalty for submitting a false or incorrect VAT return.
• A penalty for failing to register for VAT.

Businesses that are registered for VAT should take steps to avoid late filing penalties. Here are a few tips:

• File your VAT returns on time.
• Set up reminders to help you stay on track.
• Use a reliable VAT compliance software.
• If you are going to be late filing your return, contact the tax authorities as soon as possible.

By following these tips, you can help to avoid the penalties for submitting a late German VAT return.

Here are some additional things to keep in mind about the penalties for late VAT filing in Germany:

• The penalties are assessed by the tax authorities. The amount of the penalty may be reduced if the taxpayer can show that there were extenuating circumstances.
• The penalties are in addition to the VAT that is due.
• The penalties can be a significant financial burden for businesses, so it is important to take steps to avoid them.

Always the best recommendation regarding taxes in Germany is to contact a professional or a Tax Office that can advise you correctly. At TAXFBA we have professionals who can help you with your company and the payment of taxes in Germany.