When Are VAT Returns Due? Filing and Payment Deadlines

Value Added Tax, or VAT, is a consumption tax applied to goods and services at each stage of the supply chain. Businesses typically collect this tax from their customers and then remit it to the government. A VAT return is a formal document where businesses report the VAT they have charged on sales (output VAT) and the VAT they have paid on purchases (input VAT). This regular reporting ensures compliance and the proper transfer of collected tax amounts to the relevant tax authorities.

Common VAT Return Deadlines

Businesses registered for VAT must submit returns and make payments regularly. The most common filing period is quarterly, covering three months. Quarterly returns and payments are typically due one month and seven days after the period ends. For example, a quarter ending March 31 would be due May 7.

Some businesses, especially those with higher turnover or regular VAT refunds, may file monthly returns. Monthly returns also follow the “one month and seven days” rule after the month’s end. A few businesses qualify for annual accounting, submitting one return per year. These schemes usually have a longer deadline, often two months after their accounting year-end, with interim payments made throughout the year.

Payment deadlines for VAT owed align with submission deadlines. If a due date falls on a weekend or public holiday, the deadline shifts to the next working day. Businesses should plan accounting processes to complete calculations and submissions in advance.

Filing Deadlines for Special VAT Schemes

Certain VAT schemes or business situations can alter standard filing and payment deadlines. For instance, schemes like the Flat Rate Scheme retain the same quarterly or annual filing frequency but adjust how VAT is calculated. While submission deadlines remain consistent, the simplified calculation might ease preparation.

Specific deadlines also arise when a business first registers for VAT or when it cancels its registration. A new business may have a first VAT period longer or shorter than a standard quarter, with its due date calculated from the end of that period. When a business deregisters, a final VAT return is usually required within two months of deregistration to settle outstanding VAT matters.

Submitting Your VAT Return

Once a business has prepared its VAT return, understanding the submission process is the next step to ensure compliance. The primary method for submitting VAT returns is through an online portal provided by the tax authority. This typically involves logging into a secure account, navigating to the VAT return section, and inputting the required figures or uploading a pre-prepared file. Many modern accounting software packages can also directly integrate with the tax authority’s system, allowing for seamless electronic submission of the return with a few clicks.

Some businesses may choose to use an authorized tax agent, who can submit the return on their behalf using specialized agent software. After the return is submitted, any VAT owed can be paid through various methods. Direct debit is a common and convenient option, where the tax authority automatically collects the payment on the due date. Other payment methods include bank transfers, online banking payments, or even debit card payments through the tax authority’s website.

What Happens If You Miss a Deadline

Failing to submit a VAT return or pay any VAT due by the established deadline can lead to specific consequences. Tax authorities generally impose penalties for late submission of a VAT return. These penalties can range from a fixed charge for the first late submission to escalating charges for repeated non-compliance within a certain period. For example, a business might face a penalty of a few hundred dollars for an initial late filing, with subsequent late filings within a year attracting higher penalties.

Beyond submission penalties, interest charges are commonly applied to any overdue VAT amounts. This interest is typically calculated daily from the due date until the payment is received, adding to the total amount owed. The rate of interest is often linked to a base rate plus a percentage, similar to commercial interest rates. Repeated failures to meet deadlines can also result in more stringent compliance measures or increased scrutiny from the tax authority, potentially leading to audits or further investigations.