VAT Return is the regular reporting of the calculated VAT liability or a VAT surplus to the tax office. It is based on the ongoing bookings of the Financial accounting.
Basics
As part of their accounting, companies record both VAT on outgoing supplies and input tax on incoming supplies. The difference results in the tax liability or an input tax surplus.
The investigation is carried out on the basis of properly recorded Booking entries and correct Account assignment.
Legal framework
The obligation to submit the VAT advance return arises from VAT law. It must be submitted electronically to the responsible tax office by the specified deadline.
Note: Complete and comprehensible bookkeeping is a prerequisite for a correct advance notification.
Systematic classification
The VAT pre-registration is a regular part of ongoing financial processes. It is closely related to:
- Current financial accounting
- Content Agreements
- Preparation of Annual financial statement
It does not constitute independent bookkeeping, but is based on business transactions that have already been recorded.
Requirements
- Proper recording of all tax-relevant business transactions
- Clean bookkeeping
- Regular reconciliation of tax accounts
- Understandable documentation
Typical procedure
- Determining VAT and input tax
- Reconciliation of tax accounts
- Creation of the electronic report
- Submission to the tax office
Practical relevance
The VAT pre-return is a recurring process within accounting. Incorrect or incomplete bookings can have a direct impact on the reported amounts.
Typical sources of error
- Incomplete recording of tax-relevant sales
- Incorrect assignment of tax accounts
- Missing reconciliation of tax accounts before submission
FAQ
What is a VAT return?
The regular reporting of the determined VAT liability or an input tax surplus to the tax office.
What is it based on?
On the continuous recording of financial accounting transactions.
Is it mandatory?
For taxable companies, there is generally a statutory obligation to pay dues.
Conclusion
The VAT pre-registration is a legally regulated component of ongoing financial accounting. Its accuracy is directly dependent on the proper recording and reconciliation of tax-relevant business transactions.
Brasser Accounting Solutions GmbH is a specialised accounting service provider and part of a corporate group with Quint GmbH (tax consultancy/auditing) and Service Place Årjäng AB (Swedish tax office). BAS exclusively performs services according to § 6 No. 3 and 4 StBerG and does not provide tax or legal advice.
