The advance VAT return (UStVA) is a tax return with which a business declares the VAT for a specific advance return period to the Tax office and calculates the resulting advance payment itself. The legal basis is, in particular, § 18 of the German Turnover Tax Act.
What is a VAT return?
The advance VAT return is part of the VAT taxation procedure. It summarises the VAT amounts relevant for a specific advance return period.
The preliminary return is generally submitted electronically to the tax administration. Whether a business owner is obliged to submit one and which preliminary return period applies depends on the legal requirements.
What role do VAT and Input VAT play?
The starting point for advance VAT return is that which must be taken into account for the respective period Value Added Tax.
Of these, the deductible amounts under the statutory conditions Input VATamounts are deducted. This can result in either a VAT advance payment or a surplus in favour of the business.
In short: The VAT return summarises the VAT and Vorsteuer amounts relevant for a pre-registration period.
What is the advance return period?
The advance return period determines the period for which the advance VAT return is submitted.
Basically, that is calendar quarter the advance return period. If the relevant tax for the preceding calendar year exceeds 9,000 euros, the principle is that the calendar month return period.
If the tax for the previous calendar year does not exceed 2,000 euros, the Tax office may exempt the business owner from the obligation to submit advance returns and make advance payments.
When is the advance VAT return submitted?
The advance VAT return is generally available until tenth day after the end of the respective advance return period to be submitted. Any resulting advance payment shall generally become due at the same time.
Special regulations, such as an extension of time limit, may apply to the submission deadline under statutory conditions.
advance VAT return and VAT annual return – what is the difference?
The advance VAT return concerns individual advance return periods within a year. The Annual VAT return for the calendar year, on the other hand, generally relates to the entire assessment period.
Both are tax returns, but they fulfil different functions within the taxation procedure.
In short: The VAT return relates to individual periods during the year, whereas the VAT annual return covers the entire assessment period.
advance VAT return and VAT – what's the difference?
The Value Added Tax refers to the tax itself. The advance VAT return, on the other hand, is the tax return used to declare the VAT amounts relevant for a preliminary return period to the Tax office.
Special VAT issues, for example the reverse charge mechanism for the Reverse charge procedure, can also have an impact on the amounts to be declared in a preliminary return.
