The Tax and Customs Administration no longer sends the VAT return notification to businesses required to file a VAT return in advance of the tax year, but shortly before the VAT return for the first tax period is due.
VAT return by period
For VAT returns, the Tax and Customs Administration uses three reporting periods:
– monthly returns: you will receive the return form in January 2016;
– quarterly returns: you will receive the return notice in March 2016;
– annual tax return: you will receive your tax return notice in December 2016.
The general rule is that VAT returns must be submitted quarterly. Upon request – for example, if you are expecting larger refunds – the Tax and Customs Administration will issue monthly returns. Without a request, the Tax and Customs Administration will do so if you have repeatedly failed to meet your VAT obligations or have failed to do so on time. In that case, a request to be eligible for quarterly returns again will be refused until it is clear that you are once again submitting your VAT returns and paying the VAT due in full and within all statutory deadlines.
Incidentally, you do not need to wait for the tax return notice to submit your VAT return. If you are registered with the Tax and Customs Administration as a VAT-registered business, the VAT return will be available electronically in your personal account on the the Tax and Customs Administration’s website from the end of each tax return period. You will, of course, find a list including the final deadlines for filing and payment.
If you would still like to receive a reminder, you can use the app provided by the Tax and Customs Administration VAT alert download. This app replaces the text messaging service.
In addition, you can provide an email address in your personal account on the Tax and Customs Administration’s website, to which the Tax and Customs Administration will send you a reminder prior to the tax return month.
Exemption from administrative obligations
If the balance of the VAT you owe over a calendar year is less than €1,883, you may apply to the Tax and Customs Administration to be exempted from administrative obligations. Under the Small Business Scheme (KOR), you are not required to pay VAT in such cases. If you have been granted an exemption from administrative obligations, you no longer need to submit VAT returns. Furthermore, you may no longer charge VAT to your customers or claim VAT deductions. The Small Business Scheme does not apply to legal entities.
For example, (private) owners of solar panels usually have a VAT balance of less than €1,883 in the year following the purchase of the panels. Thanks to an exemption from administrative obligations, they do not need to worry about submitting their periodic VAT returns on time. The application for exemption from administrative obligations takes effect at the start of the calendar year. If you wish to be exempt from administrative obligations in 2016, the Tax and Customs Administration must receive your application before 1 January 2016 have received.