Turnover tax - submit annual return or advance return

Annual VAT return

You must submit an electronic VAT return to the tax office for each calendar year. In it, you calculate the VAT yourself.

If your calculation results in an additional payment, you must pay this to the tax office within one month of submitting the annual return without being asked to do so. A refund amount will be offset against outstanding tax amounts or transferred to the account you have notified to the tax office. You will only receive a VAT assessment notice if the tax office deviates from the VAT you have calculated.

Advance VAT return

As an entrepreneur, you must submit advance VAT returns to the tax office electronically on a monthly or quarterly basis. The submission period in the current year is regularly determined by the amount of the previous year's tax. The following rules apply, among others:

• If the VAT for the previous calendar year amounted to more than EUR 9,000, advance VAT returns must be submitted monthly in the current year.
• If the previous year's tax did not exceed EUR 2,000, the tax office may exempt you from submitting advance VAT returns. In this case, only one annual return needs to be submitted.
• If there was a surplus in your favour of more than EUR 9,000 in the previous calendar year, you can choose the calendar month as the advance return period instead of the calendar quarter.
• When setting up a new company, the pre-notification period is based on the expected tax in the year of foundation. The aforementioned amount limits apply. Based on the expected tax, it is determined whether you have to submit monthly or quarterly advance returns. An exemption from submitting advance returns is not possible for newly founded companies.
• If you apply the small business regulation (19 UStG), you are generally exempt from submitting advance VAT returns and the annual VAT return.

The advance return must be received by the tax office no later than the 10th day after the end of the advance return period (quarter, month); at the same time, you must pay the self-calculated tax on your own initiative. The tax office will not issue a separate request for payment.

Permanent deadline extension

The tax office can extend the deadline for submitting the advance returns and for paying the advance payments by one month. If you wish to make use of a permanent extension for the submission of current advance VAT returns, you must apply to the tax office in advance. The deadline extension can be utilised if the tax office does not reject your application. A separate notice of authorisation will not be issued. The extension is valid until you no longer wish to make use of it or the tax office cancels it.

In the case of monthly returns, the granting of this permanent extension is dependent on a special advance payment being made. If you file quarterly, you do not have to make a special advance payment.

In the case of the monthly submission obligation, you must register and pay the special advance payment by the 10th of the month following the month for which the extension is to apply for the first time. During its period of validity, the special advance payment must be registered and paid annually by 10 February.


Obligation for authenticated electronic transmission

You must transmit the advance VAT return, the application for a permanent extension and the VAT return electronically to the tax authorities in an authenticated manner. You can obtain the electronic certificate required for this at www.elster.de.