1. Wrong VAT return filing because of an error with the data:
- The wrong VAT return needs to be corrected as soon as possible.
- There will be audits.
- There may be additional assessments with interests and penalties.
- Incorrect filing may in some cases be qualified as intentional, which in consequence will lead to tax evasion.
2. Wrong VAT return filing done with the purpose of hiding transactions or similar:
- Limitation period will be extended from 4 to 10 years.
- The evaded taxes are to be paid plus additionally 6 % interests on top.
- The interest may not be deducted within income tax.
- The tax evaded can be banned from trading within the territory of the Federal republic of Germany.
- Financial Penalties.
- Imprisonment up to 10 years.