Value Added Tax in local language is "Mehrwertsteuer" and the acronym VAT is translated as "MWSt".

VAT penalties in Germany

  • Cause
  • Late filing
    In practice these are often not applied. However, according to the law, a penalty of up to 10% of the assessed VAT can be charged with a maximum limit of €25,000
  • Late payment

    Only penalty is a 1% interest per month on the amount due.

    In addition, if VAT is not paid in 16 months following the end of the year in which VAT became due, late payment interest of 0.5% should be added monthly

  • Late registration
    Normally, no penalties for late registration. However, the authorities may impose penalties for late registration in case of long delays or voluntary errors.

Additional penalties may be charged by the authorities, particularly where the corrections are triggered by an investigation or VAT audit.

For penalties on ECSL, Intrastat and other returns, please see the relevant section.

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