VAT Advance Return: Who Qualifies and What You Get
Learn how to manage your monthly or quarterly VAT reporting and avoid automatic late fees with this guide to the advance return system.
This system requires businesses to report the value-added tax they have collected and paid on a regular, recurring basis to the relevant tax authorities.
Who it's for
This scheme applies to businesses that do not operate under the small business regulation. If your business is not exempt from VAT obligations and must account for the tax on your sales, you fall under this reporting requirement.
What you get
The advance return allows you to fulfill your obligation of reporting the VAT collected from your customers and the VAT you have paid on your own business expenses. Depending on your specific business requirements, these reports are submitted on either a monthly or a quarterly basis to ensure that tax amounts are tracked accurately throughout the year.
What it costs you
There is no direct monetary fee charged to file these reports, but the process requires a specific digital method. You are required to handle all submissions through the ELSTER digital system. This means you must have the necessary digital access and technical setup to use the official electronic platform to remain compliant.
The catch to know
The most important detail to remember is the strict monthly deadline. You must complete your submission by the 10th of the month for the preceding period. If you fail to meet this specific date, the system triggers automatic late fees, which can add unexpected costs to your business operations.
How to apply
- Confirm that your business does not fall under the small business regulation.
- Register for an account on the official ELSTER digital portal.
- Collect and calculate all VAT collected from sales and VAT paid on expenses for the period.
- Complete the digital filing through the ELSTER platform.
- Submit your report before the 10th of the month to avoid automatic penalties.