basic iVAT advance returns act as tax returns for the VAT collected through trading and selling. Once you are VAT registered, you will need to submit these returns on a regular basis. You can find out how this works and when you have to submit the advance VAT returns in the following article. We also give you country-specific information so that you can take care of all tasks on time and avoid fines.
Dominik Larcher
Last Updated on 3 May 2022
What is a VAT return?
A VAT return is a type of tax return with which entrepreneurs must regularly report the VAT they have collected to the tax authorities before they pay the VAT amount. In each advance VAT return, only those transactions are listed that have also been subject to the VAT rates applicable in this country. If an entrepreneur from Germany, where the VAT rates are 19% and 7%, has charged some customers 21%, he usually has to submit another VAT return in another country. In other countries, there are usually other deadlines, rules, and formats that must be observed.
The following therefore applies: For multinational retailers, in particular, the submission of advance VAT returns is usually a large and time-consuming task. hellotax can help here. Our software automates the compilation of VAT returns while our team of local tax advisors takes care of the filing. All you have to do is wait for our submission confirmation and transfer the VAT to the authorities when the time comes. Contact us today to set up a meeting with our EU VAT experts and find out more.
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When do I have to submit advance VAT returns?
The deadlines for filing advance VAT returns in Europe not only differ from country to country but also from entrepreneur to entrepreneur. Regulations apply in almost all countries, according to which entrepreneurs with low sales only have to submit the returns quarterly, but entrepreneurs with more sales have to submit them monthly. In general, however, the following applies: in most cases, the VAT returns must be submitted within the first few days after the end of the tax period.
But not only VAT advance returns have to be submitted. Online retailers across the EU also have to take care of the EC listing and submit country-specific documents. Here, too, the deadlines differ.
How do I submit VAT returns in Europe?
As soon as you have registered for VAT, you must submit all declarations on time. But how are the documents transmitted to the tax authorities in the first place? In many EU countries, electronic submission is now possible or even mandatory via the portals of the tax authorities. For this, you not only need a VAT identification number but often also a registration for the portal, as well as the name of the correct form.
You can find the exact submission procedure, applicable deadlines, and the names of the forms you need to fill out in each country in the following articles. We have compiled country-specific information for you here.
What does the EU One-Stop-Shop (OSS) have to do with advance VAT returns?
The One Stop Shop is a new EU program designed to make it easier for multinational retailers to meet their VAT obligations. After registering for the OSS, you can list all cross-border deliveries for transactions with private individuals in one OSS summary report instead of having to file several VAT returns abroad. You can find more information about the One-Stop-Shop on our blog.
For many online sellers, the One-Stop-Shop sounds too good to be true – because it is. As soon as goods are stored abroad, you will not be able to avoid VAT registration and the regular submission of VAT returns. Then, not only do you have to consider different deadlines, but you also have to sort the transactions according to the types of submissions in which they need to be reported.
The compilation of OSS reports itself also poses a challenge. This is because the sales data must be sorted according to the country of origin and destination as well as by VAT rates and accordingly entered individually in the forms for the OSS report so that the tax office can assign the sales to the respective countries. hellotax can help you here too. In addition to advance VAT returns, our software also automates the compilation of OSS reports which are then submitted by our tax experts. Contact us and find out how we can simplify all your VAT obligations in the European Union.
Hellotax One-Stop-Shop Solution
- Automated identification of B2C sales
- Automated determination of your tax rates
- Handling of OSS registrations and reports
- Quality control for your transactions
