VAT Return: 2nd Quarter 2023 – Essential Considerations for Smooth Filing
Are you required to file VAT returns on a quarterly basis? Time is running out to submit your VAT return for the second quarter of 2023. This return covers income and expenses incurred between April and June.
To ensure a hassle-free filing process, take note of the following key points:
- Timely Submission and Payment: Avoid penalties by submitting your return on time. The filing period opens on July 1, and the deadline is July 31. Make sure to settle any payable amounts by the same deadline.
- Differentiate Domestic and International Income: Properly distinguish between income generated within the Netherlands, income from other EU countries, and income from outside the EU. This distinction is crucial for accurate VAT reporting. Remember, if you earned income outside the Netherlands but within the EU, an ICP declaration is also required.
- Optimize Input Tax Deduction: Be cautious when deducting VAT as pre-tax. Only eligible business expenses qualify for deduction. For instance, VAT on food and drinks in the hospitality industry is generally non-deductible, regardless of whether it’s a business-related expense. Keep meticulous records of your receipts for at least 7 years to comply with retention requirements.
Consequences of Late Filing:
Late filing of the VAT return incurs a penalty of €68. Failure to pay or late payment of outstanding amounts can result in additional default penalties. These penalties amount to 3% of the late payment, with a minimum of €50. If you fail to file a tax return, the Belastingdienst may estimate the amount, potentially leading to higher penalties.
We are happy to help!
How We Can Assist You:
We offer professional support in filing your VAT and ICP returns. Our process is designed for convenience and accuracy. Here’s how it works: We’ll send you a timely email reminder well before the quarterly period begins. This email will provide all the necessary information and deadlines. Once we have received all the required details, we’ll prepare your VAT return and send it to you for review. After your approval, we’ll handle the complete filing process on your behalf.
Mark your calendar: The deadline for the 3rd quarter (July, August, and September) is October 31, 2023. For the 4th quarter (October, November, and December), both the return and payment must be completed by January 31, 2024.
Should you have any further questions or require additional assistance, please don’t hesitate to reach out to us. We’re here to help you navigate the VAT filing process smoothly!