How do I file my advance VAT return?
The advance VAT return is the (regular) advance payment of value-added tax to the tax office. Not to be confused with the annual VAT return, which is the one-time final settlement after the calendar year.
You only need to file advance VAT returns if you are subject to VAT.
Are you subject to VAT? If your revenue in the previous year was under €25,000 and you don't expect more than €100,000 revenue in the current year, you qualify as a small business owner according to §19 UStG and are exempt from VAT liability. You don't have to charge or remit VAT and don't need to file advance VAT returns. Source
How often do I need to file the advance VAT return?
Depending on your revenue or VAT liability, the advance VAT return must be filed monthly, quarterly, or annually.
- annual liability over €9,000 → monthly
- annual liability under €9,000 → quarterly
- annual liability under €2,000 → annually
If you've just started your business, you must file an advance VAT return monthly in the current and following calendar year. Source
Deadlines and payment dates
The filing deadline is the 10th day after the end of the reporting period. For example, February 10th for the January filing or July 10th for the advance VAT return for the second quarter. Source
Permanent extension – more time for VAT Source
Anyone who must file their advance VAT return regularly can apply for a permanent extension. This shifts the filing deadline back by one month and allows more time for bookkeeping and payment.
For monthly filing, you must make a one-time special advance payment (usually 1/11 of the previous year's liability), which is credited later. For quarterly filing, no advance payment is required.
The application should ideally be submitted before your first filing deadline (i.e., February 10th or March 10th) via ELSTER or informally to the tax office and is valid from the time of approval.
Step-by-step: How to file the advance VAT return
- Log in to ELSTER
- Select the "Umsatzsteuervoranmeldung" form
- Enter income and input tax
- Review and submit electronically
- Transfer tax amount (wait for credit if input tax exceeds output tax)
Practical tips
Set aside monthly reserves (e.g., 30% of income) to manage advance payments as well as additional payments.
Set reminders for deadlines or use software to automate your advance VAT return, such as LEXWARE, sevdesk, or similar.
Apply for a permanent extension early to have more time for your advance VAT return.
Renew your ELSTER certificate in time (three-year validity).
Common mistakes
Small errors are usually correctable. However, it's important to carefully review the advance VAT return and report or correct errors quickly. Source
If you file your advance VAT return late, the tax office can impose a late filing penalty. Source
If the input tax is calculated incorrectly or you confuse net and gross amounts, the tax office will request a correction or additional payment.
If you haven't renewed your permanent extension, the regular deadline applies again from the start of the new calendar year. You can reapply for the permanent extension at any time.