Best Tax Filing Options You can Easily Opt for

Entrepreneurs, in particular, often have problems preparing the advance VAT return. This can lead to difficulties, especially if the advance VAT return is submitted once a year. If you submit the advance VAT return, it is essential to make sure that different tax rates apply to certain products and services. For example, if 7% is due for books, it is 19% for most other goods and services.

The 19% VAT rate does not apply to all services

However, the 19% VAT rate does not apply to all types of services either. For example, if you are a self-employed person who offers services in which creative personal performance dominates, then only 7% should actually be applied.

To get clarity as to whether 7% should be applied to a service, it is advisable to take a look at the sales tax application decree.

Unfortunately, the sales tax application decree is quite opaque for tax laypeople. To actually be sure, you should consult a tax advisor. In online tax filing this is important.

Carry out the advance VAT return with the greatest care

The information in the advance VAT return must also be calculated with the greatest care. If there are discrepancies when comparing the monthly VAT return and the annual tax return , this quickly leads to problems.

  • Especially if the information given in advance is significantly lower. In this case, the tax office is happy to assume that there is an intentional postponement. An on-site tax audit can result.
  • If you come across errors in the advance VAT return, then these should be corrected before submitting the annual VAT return.
  • The German tax system is generally structured in such a way that every taxpayer, including companies subject to VAT, has to declare his own taxes.
  • The sales tax is announced to the tax office as part of the sales tax return. From a legal point of view, this VAT return corresponds to a tax assessment.

Transferred this means that the entrepreneur has to set the amount of his sales tax himself. The tax office only intervenes if it considers the declaration to be incorrect.

This also means that 4 weeks after submitting a VAT return, the entrepreneur must pay the declared VAT amount to the tax office independently and without further request.

The advance VAT return

It is used by the tax office to collect the VAT that is actually to be collected annually before the end of the year. The entrepreneur should not have an interest rate advantage.

To do this, the entrepreneur submits the advance VAT return to the tax office by the 10th of the following month and then has to pay the VAT to the tax office.


This narrow period of 10 days after the end of the month is too short for many companies. These companies can apply for a permanent extension to the tax office. This permanent extension means that the date for the following advance VAT return can be postponed by 4 weeks. This then applies to each subsequent advance VAT return. Therefore, the application for a permanent extension is only necessary once.