On 23 October 2024, a Royal Decree was published regarding the modernisation of the VAT chain
and the associated changes from 1 January 2025. We would like to highlight the most important innovations for you.
Filing of VAT returns and payment of VAT
As of 1 January 2025, those filing quarterly can submit VAT returns no later than the 25th day following the quarter. The same applies to the payment of the VAT due. Those filing monthly will continue to submit VAT returns no later than the 20th day following the month. The same applies to the payment of the VAT due. Tolerance of the filing of periodic VAT returns later will be abolished.
The correction of a VAT return due to material error is only possible if the deadline for filing this VAT return has not yet expired. Corrections after this date must be corrected through a subsequent VAT return.
As of this date, VAT debts can also be paid by direct debit.
VAT commission account and refund credits
The current account will disappear and make way for the VAT commission account. This commission account allows the taxpayer to manage their VAT credits themself.
A request for a refund of VAT only applies to the current VAT return. VAT refunds (in whole or in part) for previous periods must be paid via the commission account. Amounts can also be deposited in the commission account for any future VAT debts.
If no refund is requested/approved, the amount will be entered in the commission account. Please note, this only happens after a VAT audit by the VAT administration.
Those filing monthly can request a refund of the VAT credit on a monthly basis. Those filing monthly will also get their VAT credits refunded faster. This will be no later than the 2nd month following the return period. For those filing quarterly, this will remain no later than the end of the 3rd month following the return period. To obtain a refund, VAT returns for the previous 6 months must be submitted on time both by those filing monthly and by those filing quarterly.
The commission account will take effect from 1 February 2025. From this date until 30 June 2025, the amounts from the present current account will be transferred to the commission account.
Penalties for late filing or payment
In the event of late filing of the VAT return, a VAT audit will also be carried out (within 3 months) before the VAT credit is entered in the commission account. In the following cases, the VAT credit will not be refunded:
- If there are still outstanding debts
- If there are serious suspicions that the information in the VAT return is incorrect
- If the taxpayer does not respond to the request for information regarding this VAT credit within the statutory period of 10 days
In the event of late payment of the VAT due, a penalty of between 5% and 15% will be imposed, depending on when the VAT is finally paid. This is actually lower than the 15% fine that we currently have and that is imposed fairly quickly.
In the event of late filing, a fine of 100 euros per month late (max. 500 euros) will be imposed. If the VAT return has not been submitted after 3 months, the VAT administration itself will provide a proposal for a replacement return. The taxpayer then has 1 month to contest the proposal, by filing their periodic VAT return. After the last period of 1 month, the administration will notify the taxpayer of a final replacement return (whereby the VAT administration sets an amount based on the highest payment position of the last 12 months with a minimum of 2,100 euros), which the taxpayer can only contest by means of an administrative objection or a claim in court.
Failure to file the VAT return is also subject to a fine: 500 euros for the first offence, 1,250 euros for the second offence, 2,500 euros for the third offence, 5,000 euros for subsequent offences.
Our PKF BOFIDI experts will be happy to help you
Do you have any questions about the VAT changes? Get in touch with one of our experts from the PKF BOFIDI VAT team. They will be happy to help you.