Fortunately, that is a while behind us! Because since 1 April 2017, it is no longer required to pay VAT advances to the VAT administration.
A VAT advance before April 2017?
Everyone subject to VAT who filed quarterly returns had to pay a VAT advance to the VAT administration by the 20th of the second and third month of each quarter.
Those VAT advances were equal to 1/3rd of the VAT due from the previous quarter. That meant you had to pay 2 VAT advances every quarter to then finally pay the remaining VAT amount. Still quite an administrative hassle.
You also had to look up every time whether you had actually paid that advance (it’s easy to forget) and exactly how much that advance was. Because you then had to take these advances into account for the final amount you still had to pay in vAT amount.
A vAT advance since April 2017?
That scheme was fortunately abolished. So, entrepreneurs subject to VAT no longer have to pay interim VAT advances since 1 April 2017. The vAT December advance has also been abolished! That was that pesky advance that you, as a VAT subject to VAT, still had to pay temporarily at the latest 20 December. Since 2020, that too is no longer an issue.
A payment of the VAT balance evidenced by your vAT declaration is sufficient and each time by no later than the 20th of the month following the quarter. You must also submit your vAT declaration by no later than the 20th of the month following the quarter.
Are you still allowed to pay VAT advances? 🔎
Of course, you can always – whenever you want – pay a VAT advance. There used to be (before April 2017) penalties if you had not paid a VAT advance, since April 2017 that penalty system has been taken out.
So you have no financial or tax advantage in paying an interim vAT amount! However, it can sometimes be psychologically pleasing to pay an interim advance to the VAT administration anyway, this way the balance of your professional account is also better in line with what you effectively still have available.
Beware of structured communication!
Each payment to the VAT authorities must be accompanied by your personal structured communication! Do you make a payment without this structured communication? Then the VAT authorities will not link the payment to your dossier, with all the consequences this entails.
Have you forgotten the structured communication? Then contact your SME management centre as soon as possible. Via a copy of your payment, you can still have the payment linked to your dossier.
Filing a vAT declaration with Dexxter?
Piece of cake! Because via our tax timeline and the handy vAT declarations in Dexxter, you can see clearly when you have to do what.
Of course, we also display your personal structured communication every time we talk about a vAT balance to be paid. We can generate this structured communication automatically on the basis of your company number.
To top it all off, we also offer a QR code. Just scan it and all your payment details for your VAT balance are ready, so you will never forget the structured communication.
Still want some extra information about a vAT declaration and payment? Then you can always take a look at the website of the Federal Public Service Finance.
Do you still have questions?
Then chances are you will find answers in our quick courses! We have two quick courses ready for you, one for the VAT exempted entrepreneur and one for the entrepreneur subject to VAT.
There you can find a lot more information on everything to do with a vAT declaration.
