2019 Annual VAT return in Germany deadline to be extended

Deadline extended for 2019 Annual VAT return in Germany

The German tax authorities previously provided relief in light of the pandemic by reducing the standard and reduced VAT rates. In February 2021 further relief was provided when a bill was passed to extend deadlines for the annual VAT return for the 2019 reporting period. It will be put into effect after it is published in Germany’s official gazette. We will continue to monitor for any updates on the matter.

Changes to expect

As announced in 2017, annual VAT returns in Germany are due on 31 July of the following year of the reporting period at hand for taxpayers who submit the returns themselves or via a foreign VAT return service. In this case, the normal deadline for the 2019 reporting period would have been 31 July 2021. With the official publication of the bill, the new deadline would change to 31 August 2021.

Companies who utilize a recognized tax consultant normally enjoy an extension to submit their annual VAT return, with a due date of 28 February of the second following year. The new bill would extend this deadline for 2019 to 31 March 2021.   

What does the annual VAT return consist of?

In addition to the annual VAT return, businesses must periodically submit VAT returns throughout the year, either monthly or quarterly. These returns are considered to be preliminary, as the data is only finalized upon submission of the annual VAT return. The annual VAT return’s purpose is to summarize all the data originally reported throughout the calendar year.