Incorrect VAT returns, whether due to errors or fraudulent intentions, can lead to substantial penalties. The following outlines the consequences for unintentional mistakes, deliberate false declarations, and late submissions:

1️⃣ Errors in VAT Returns (Unintentional Mistakes)❌

• A fixed penalty of €15 per error is imposed.
• The minimum total penalty is €60, and the maximum penalty can go up to €10,000.

2️⃣ Deliberate False VAT Declarations (Bad Faith or Fraud)💼

• If the tax authorities determine bad faith, a penalty of 40% of the undeclared VAT is applied.
• In case of fraud, the penalty increases to 80% of the undeclared VAT.

3️⃣ Late Filing and Payment⏰

• A 10% penalty is applied for late filings.
• If the return is not submitted within 30 days of a formal notice, the penalty rises to 40%.
• In cases of fraud, the penalty can increase to 80%.

Late payments are subject to 0.2% monthly interest and an additional 5% penalty.