The consequences of not declaring or paying the VAT in time
A business will have to declare the VAT to the tax authorities every month or quarter (or even year). It may happen that you can't declare and pay in time due to certain circumstances. What will be the consequences?
What happens if I didn't file a VAT return in time?
If you don't file the periodic VAT return before the applicable deadline, you will receive a minimum fine of € 61. The maximum fine is € 123 depending on how many times you filed late.
What happens if I filed a VAT return in time but didn't pay in time?
From January 1, 2009 the rules with regards to payment omissions changed. You will have to pay a fine of 2% of the amount which you haven't paid with a minimum of € 50 and a maximum of € 4,920. You can prevent the fine if you still pay within 7 days after the deadline and you paid in time the previous period.
What happens if I only pay part of the VAT?
You can also choose only to pay part of the VAT to the tax authorities. This means that the fine for late payment will only be calculated over the amount which you haven't paid yet.
What are the possibilities if it is not my fault that the VAT was paid too late?
If it is not your fault that the payment was made too late or not done at all (for example due to problems with your bank), you will not have to pay the fine. But it is up to you to proof that you are not to blaim which can be difficult.
What if I don't agree with the fine?
If you don't agree with the fine you will have to write a letter of objection to the Dutch tax authorities within 6 weeks from the date the VAT assessment was issued. You must also request a time extension for payment of the VAT assessment to prevent that the tax authorities keep chasing you for the payment and raise the outstanding amount with additional costs.
What if I filed or paid the VAT too late on purpose?
The above mentioned fines are applicable in case of "normal" omissions. In case the VAT was filed or paid late on purpose or in case of fraud the fines can be much higher, from 25% up to 100% of the not declared or paid VAT amount. The tax authorities will have to proof this.
The certified accountants of Expatax can assist you with filing the periodic VAT returns and also help you with the business administration and year end accounts. Contact us to discuss your situation.