Submitting an incorrect VAT return can lead to penalties. The severity depends on whether it was due to an error or intentional misreporting.

1️⃣ Incorrect VAT Return Due to an Error ❌

📌 Small Corrections (€1,000 or Less)

• If you overpay or underpay VAT and the difference is €1,000 or less, there is no need to submit a supplementary declaration.
• You can correct it in the next VAT return instead.
• This rule applies to both the current year and the past five years.

📌 Corrections Above €1,000

• The error must be adjusted in the specific VAT return section where the amount should have been reported.
• If you submit the correction on time, only a default fine of 5% of the VAT due may apply (maximum €5,514).

📢 No Default Penalty If:
✅ The VAT amount to be paid in the correction is €20,000 or less.
✅ The additional VAT due is less than 10% of the tax previously paid or refunded for the relevant period(s).

2️⃣ Intentional Misreporting or Fraud 🚨

📌 Severe penalties apply if incorrect reporting is done deliberately:

• The negligence fine can be up to 100% of the outstanding VAT amount.