VAT filed too late and fine, is a subject we encounter a lot recently. Often newly established companies encounter this rather unpleasant message. What to do?
VAT filed too late and fine
A Value Added Tax (VAT) return is to be filed at the date set by the tax office. This date is for quarterly returns is the last day of the month following the quarter months. That is January, April, July and October.
In the event you have an annual VAT obligation, the deadline is March 31st after the year ended. If you have a monthly obligation, you need to have filed before the end of the next month.
Nonresident companies can also have a quarterly VAT obligation, their deadline is the second month following the quarter. That is February, May, Augusts and November.
Regardless of your VAT obligation period, the tax office always sends you every year at the start of the year an overview of your obligations. VAT is a too important money source for our Government, hence it has all the attention of the Dutch tax office.
Just started a company
What we experience is that companies that just started, and have not yet made any turnover, do not file the VAT return. The thought is that by lack of turnover, there is no filing obligation. That thought is not correct.
Firstly, the Dutch tax office does not know you made no turnover. This is only made known to them by filing the VAT return. Secondly, the VAT return is to be filed no matter what. And if you made no turnover, but you did make costs, you can claim back the Dutch VAT on the costs.
The fine is huge. Often a EUR 5.000 fine is imposed, plus penalty for filing too late and paying too late. The Dutch tax office is accustomed to work with human beings, and experience learns that a high penalty does the job.
What is the job that needs to be done? Indeed, filing the VAT return. The high penalty is to get you into motion to do something, and it works. Are you supposed to pay the fine. If you do not act, yes. If you do act and you file the correct VAT return still, plus a complaint against this assessment, probably you pay much less.
The fine for filing too late will remain, as you were too late. The fine for paying too late disappears if the return results in a refund.
Tax is exciting
We think tax is exciting. Getting a fine is never exciting. Then again, we will be excited to assist you getting this penalty assessment processed. Connect with us, we provide you with instructions what we would like to receive from you and most likely we can solve this issue.