Submitting an incorrect VAT return may lead to penalties or additional payments. The consequences depend on whether the mistake was due to an error or deliberate misreporting.

1️⃣ Incorrect VAT Return Due to an Error ❌

📌 Overpaid VAT

• If a VAT return has been overpaid, a correction request must be submitted to the tax authorities.
• VAT overpayments cannot be offset against future periods.

📢 Important Update (Starting Q3 2024)

• A corrective return can be submitted instead of initiating a formal procedure.
• This allows for a refund of the overpaid VAT amount more efficiently.

⚠️ Late Submission Penalties

• If the corrective return is submitted late, a penalty will apply.
• If the new VAT payable amount is higher than the original one, the difference must be paid.
• A penalty of 1% per month will be imposed on the underpaid amount for each month of delay.

2️⃣ Deliberate Misreporting or Fraud 🚨

📌 Severe penalties apply for intentional misreporting, such as:

• Failure to correct incorrect amounts within the deadline.
• Not filing the correction at all.

📢 Penalty Range:

• 50% to 150% of the total VAT due, depending on circumstances.
• Higher penalties apply if:
  🔹 Economic damage has been caused.
  🔹 Repeated offenses have been committed.

💰 Reduction for Voluntary Correction:

• If the penalty is paid within the voluntary period, a 40% reduction applies.
• The voluntary period is mentioned in the official notification letter.