Value Added Tax in the local language is “Mehrwertsteuer” and the acronym VAT is translated as “MWSt”.
Frequency of German VAT declarations
Taxpayers must submit monthly VAT returns in the first and second year of registration, unless the competent tax office informs about the change to a different settlement period.
German VAT returns are submitted monthly when the total VAT payable in the previous calendar year exceeds €7,500. If the VAT payable is less than this amount, VAT returns are usually submitted quarterly.
Companies filing quarterly VAT returns can request a change to monthly filing when the total amount of VAT to be reclaimed in the previous year exceeds EUR 7,500.
Finally, if the total amount of VAT to be paid does not exceed EUR 1,000 in the previous year, the company can submit VAT returns annually. This means that quarterly and monthly VAT returns are not required when the VAT paid in the previous year is lower than this amount.
German VAT payment deadlines
As a rule, periodic VAT returns in Germany must be submitted and paid by the 10th day of the month following the reporting period. In the case of an extension, “Dauerfristverlängerung”, the payment deadline is extended to the 10th day of the second month following the reporting period. For example, the VAT return for the first quarter is normally due by April 10, but if a payment extension applies, this date is pushed to the 10th of May.
The annual summary VAT return should normally be submitted on the last day of July of the year following the reporting period. However, if the application is submitted by a recognized tax advisor, the due date is the end of February of the second year following. For example, the annual VAT return for 2022 is normally due by July 31st, 2023. But, the payment deadline will be extended to February 28, 2024, if submitted by a recognized tax advisor. However, the deadlines for submitting annual VAT returns are temporarily extended until 2025. Gradually, the deadlines will return to normal. Check out our article for more information.
If the deadline falls on a Saturday, Sunday or public holiday, the deadline is moved to the next business day. Public holidays vary by region, so it is recommended that you double check with Marosa before considering them.
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Dauerfristverlängerung – extension of submitting VAT returns in Germany
German VAT-registered companies can get a one-month extension of the deadline for submitting VAT returns, this authorization is called „dauerfristverlängerung”. The deadline for submitting VAT returns in Germany is the 10th day of the month following the reporting period. For example, your March (or first quarter) VAT refund is usually due on April 10. After the extension, the deadline for submission and payment of the German VAT return for March (or the first quarter) is 10 May.
How to get a claim extension „dauerfristverlängerung”?
The dauerfrist application is submitted electronically via ElsterOnline, the electronic filing system of the German tax authorities. The application should be submitted within the deadline required to submit a VAT return for the last period of the year. In addition to the application, companies filing monthly VAT returns must make a prepayment of 1/11th of the VAT paid in the previous year (if the entire year was in the recoverable position, no prepayment is required). The prepayment can be recovered at the end of the year through a December return. However, a new advance will be calculated and paid to the authorities every year.
German VAT payments
VAT payments are made to the IBAN number of the relevant tax authorities. These bank details change for each taxpayer depending on the local authority where the taxpayer is VAT registered. The correct IBAN account number is provided in the confirmation of VAT registration issued by the tax authorities. It is important to check these bank details before making a payment.
The bank transfer reference number must include the tax number (Steuernummer) and the period to be paid. If there is another reason for the payment, such as penalties or corrective refunds, this should also be included in the reference number.
All bank transfer costs must be paid by the taxpayer.
VAT refund from Germany
VAT refund is automatically refunded by the tax authorities. There is no additional form or requirement to be met, VAT will be refunded in accordance with the amounts indicated in the submitted VAT return. These refunds are made monthly or quarterly, depending on how often the registered company files.
The VAT refund will be transferred by the tax authorities to the bank account provided when registering the company. If bank details are not provided, they can be provided to the authorities in writing. These details may also be required by the authorities, in which case you will be provided with a paper form to complete and return to the tax office.
German zero and correcting VAT returns
If there is no need to report transactions in a given period, a nil VAT return should be submitted. There are no specific requirements other than including 0.00 in the final VAT item.
In the case of correcting VAT declarations, in the event of a change in the output or input VAT shown in a given period, a correcting VAT declaration should be submitted instead of the previously submitted declaration.
- These refunds apply to both input and output VAT changes
- The correcting declaration completely replaces the previously submitted declaration. There is no “Supplementary Declaration” in Germany.
- Corrections to the annual summary VAT return are generally not accepted. These corrections would only be accepted if the amounts to be corrected are low and the VAT situation is not very different.
- After submitting the annual summary VAT return for a given year, each subsequent correction should be made by correcting this annual return. Adjustments to monthly or quarterly VAT returns are not allowed after submission of the annual return.
- Corrective declarations should be submitted electronically
- Both the annual and the advance VAT declaration have a comment field in which you can explain the reasons for the correction of the already submitted reporting period.
Contact with German tax authorities
In Germany, the competent tax office for a foreign non-resident company depends on the country of residence. For entities or companies registered in Germany, the competent authority depends on the official address.
If you would like find out more, or if you want a list of the competent tax authorities for each jurisdiction, please do not hesitate and contact us