Supplementary VAT return now within eight weeks

3 January 2025

In the Dutch 2024 year-end decree, a clear deadline for filing a supplementary VAT return has been introduced. From now on, an entrepreneur who finds out that too little VAT has been paid, must file a supplementary VAT return within eight weeks of such finding. Previously, the requirement was that the VAT return had to be submitted ‘as soon as possible’ after finding out; per January 1, 2025 the eight-week deadline will apply. In this tax alert, we inform you about this deadline and its practical consequences.

Deadline of filing supplementary VAT return

If, after filing a VAT return, you find out that a VAT return in the five calendar years preceding the current calendar year has been incorrectly or incompletely filed, a supplementary VAT return must be filed to correct this. This obligation applies when VAT is underreported but also when it is overreported.

As of January 1, 2025 such supplementary VAT return must be filed no later than eight weeks after discovering the incorrect VAT reporting. The previous deadline was ‘as soon as possible’.

Under the new eight-week deadline, the condition still applies that the supplementary VAT return must be filed before you know (or should reasonably suspect) that the tax inspector is aware of the incorrect VAT reporting. The supplementary VAT return is a voluntary correction, that must be made on your own initiative and may not be triggered by investigations or other actions of the tax inspector. Only then, no financial penalty will be due.

Penalties loom

The new eight-week deadline is of great practical importance, as a penalty can now be imposed if no action has been taken within eight weeks. When you find out that a VAT return is required, it must be filed within those eight weeks. Inactivity for much longer can in many cases result in a penalty.

If the deadline to file a supplementary VAT return is not met (in time) due to cases of intent or gross negligence, a financial penalty may be imposed of up to 100% of the VAT amount that has not been paid. The timely filing of supplementary VAT returns can avoid such penalties.