Paying your VAT correctly and on time is just as important as filing the return itself. This article explains how and when to pay your German VAT or OSS return, what to watch out for, and how to avoid common payment issues.

1. Understanding your payment obligations

Depending on your setup, you may be required to pay:

• German VAT (DE VAT) declared in monthly or quarterly VAT returns
• EU VAT OSS declared in a quarterly OSS return

Although both may be managed through Germany, the payment processes are different and must not be mixed.

2. When to pay German VAT (DE VAT)

a) Payment deadlines

German VAT payments must be made by the same deadline as the VAT return filing:

• Monthly or quarterly VAT returns: due by the 10th day of the following month
• Annual VAT return: due by the deadline stated by the tax office (usually later in the year)
• When to pay: Annual VAT returns - additional payments are due within 4 weeks from when the annual filing was submitted to the tax authority. If the tax authority disputes the filed annual return then they will send an assessment letter which will state the required payment deadline.

If a SEPA direct debit mandate is in place, payment is usually collected automatically by the tax office.

b) Extension of deadline (Dauerfristverlängerung)

If you have an approved Dauerfristverlängerung, the filing and payment deadline is extended by one additional month for advance VAT returns.

3. How to pay German VAT

German VAT can be paid by:

• SEPA bank transfer
• SEPA direct debit (recommended)

When paying by bank transfer, it is essential to:

• Use the correct tax office bank details
• Include the correct tax number and period in the payment reference
• Pay the exact declared amount

Incorrect references or amounts may result in the payment not being allocated correctly.

4. When to pay OSS VAT

OSS VAT is always paid quarterly, regardless of your local VAT filing frequency.

OSS payment deadlines

The payment must be received by the end of the month following the quarter:

• Q1 → 30 April
• Q2 → 31 July
• Q3 → 31 October
• Q4 → 31 January

There are no deadline extensions for OSS payments.

5. How to pay OSS VAT in Germany

OSS VAT is paid only by bank transfer to the German Federal Central Tax Office (BZSt).

Key points to note:

• OSS VAT cannot be paid by direct debit
• OSS VAT must not be combined with regular German VAT payments
• Payments must be made in EUR

Payment reference

The payment reference is critical. It must include:

• Your OSS registration number
• The OSS reporting period

Using an incorrect or missing reference may cause delays or misallocation.

6. Common payment mistakes to avoid

• Paying OSS VAT to the local tax office instead of the BZSt
• Combining OSS VAT and German VAT in one transfer
• Missing the deadline due to bank processing times
• Using an incorrect payment reference
• Paying a rounded or estimated amount instead of the exact figure

These errors may lead to late payment surcharges or interest, even if the return itself was filed on time.

7. What happens if you pay late?

If VAT is paid late, German tax authorities may apply:

• Late payment surcharges (generally 1% per month or part thereof)
• Interest on the outstanding amount
• late payments lead to interest and fees issued by the single countries involved in the OSS filing and which need to be paid directly to them. The remainder needs to be paid to the German Tax authority as normal.

For OSS, repeated late payments may also increase the risk of exclusion from the OSS scheme.

8. How hellotax helps

hellotax supports clients by:

• Confirming payment amounts before deadlines
• Providing correct payment instructions
• Monitoring due dates for DE VAT and OSS
• Helping resolve payment allocation issues with tax authorities

9. Key takeaway

To stay compliant in Germany:

• Always pay VAT by the filing deadline
• Keep DE VAT and OSS payments separate
• Use the correct payment method and reference
• Allow enough time for bank transfers

If you are unsure whether your payment was made correctly or on time, contact hellotax so the issue can be checked before penalties arise.