How to correct your VAT return?
Have you already filed your VAT return but discovered a mistake afterward? For example, you forgot an invoice or entered the wrong VAT. Mistakes happen from time to time, and the Dutch tax authorities understand that. It is not a problem, but it is important (and even mandatory) to correct this mistake in your VAT return. In this article, you can read how to do this.
Two ways to correct your VAT return
There are two ways to correct a mistake in your VAT return. Which method applies to you depends on the amount of the correction.
1. Correct in the next VAT return
So, you filed your VAT return and discovered some small mistakes: the correction is under € 1,000. In this case, there is nothing to worry about. You just have to indicate that you want to correct your previous VAT return in your next return.
2. More than € 1000? Additional return
Another situation can be that you found out that you made a bigger mistake in your VAT return: it concerns a correction of more than € 1,000. In this case, you are not allowed to correct it in the subsequent return. However, you must arrange this via the additional return (in Dutch: suppletieaangifte). Do you have to pay VAT? Then make sure to wait until the Dutch tax authorities send an additional assessment before you transfer the amount to be paid.
Fine for an incorrect VAT return?
Do you have to pay VAT after you have voluntarily corrected your VAT return? Officially, you have five years for an additional return. But if you want to avoid paying tax interest, you must submit the additional return or correction earlier. In the following cases, you do not have to pay tax interest:
- You send the additional return within three months after the end of the year in which you had to pay VAT.
- You correct the understated VAT within the year.
But sometimes, you have to pay a default penalty (in Dutch: verzuimboete) which is 5% of the VAT amount. You will receive such a fine if you have made a voluntary correction, but:
- the amount of VAT to be paid is more than €20,000 and/or
- this is more than 10% of the VAT paid.
Did you send a supplement form too late or not at all? Then, you can get a negligence penalty (vergrijpboete) instead of a default penalty. Usually, the tax penalty is higher than the negligence penalty.
Prevent a VAT correction!
Of course, the best is to avoid all these difficulties by submitting a correct VAT return. Would you like advice or help with the VAT return? Or do you have other tax-related questions? We are happy to help you! Contact us using the details below.