This can happen, faster than you think. We will first give some examples of how you might find yourself in such a situation and then provide the solution.
How can one forget to file a VAT return?
We can think of a few situations. Here are some examples that we have encountered through Dexxter support.
- You thought you had started your self-employment at the beginning of quarter 2. There was some ambiguity and the enterprise counter staff already activated your business at the end of quarter 1.
- You change from an accountant to Dexxter towards the end of a quarter. The accountant assumes you file the VAT return and you vice versa. Good agreements make good friends!
- You start an independent activity with a VAT exemption – or at least you think so. It turns out that you are subject to VAT and have already missed one (or more) VAT return deadline(s).
- …
How to solve this?
Forgetting a VAT return is not a disaster, but file the late return as soon as possible!
First check whether you need to declare something in that/those forgotten VAT return(s). Because even in late VAT returns you still have to declare the income and expenses of that period.
Often these are – due to a mistake in the start date – returns for quarters before you actually started working as a self-employed person. Then you have to file a blank VAT return for that period, which you still have to actually file.
There is no special procedure for filing late VAT returns. You can follow the regular steps in Dexxter.
Tip:
There is no special procedure to file late VAT returns. You can follow the regular steps in Dexxter.
Will I have to pay a fine?
Yes you do, the fine is €100 per return and per month of delay. One forgotten VAT return or two, it quickly makes a big difference!
But with a maximum of €1,000. So far the fine for the late filing of a return.
In addition, you – possibly – had to pay VAT in those late VAT returns. You will now pay that VAT later than if you would have filed on time. That’s why the VAT authorities will charge interest.
That interest amounts to around 8% on an annual basis, which is quite something!
Can I get an overview somewhere?
When you have to pay a fine and/or interest, you may lose track of how much you still have to pay to the VAT authorities.
Fortunately, the VAT authorities provide an overview.
Can I challenge fines?
If exceptional circumstances prevented you from filing a return, and you were acting in good faith, it’s always worth contacting the VAT authorities.
They may – by hearing your side of the story – reduce or even waive the fine for late filing. However, you will always have to pay the VAT amount and the interest charged.
