• December advance

December advance

25 November 2019

VAT taxable persons must pay an advance on the VAT due on the transactions performed in December (in case of monthly returns) or the fourth quarter (in case of quarterly returns).

The advance payment can be determined in 2 ways.

Advance payment equal to transactions 1 December - 20 December (for monthly declarants) / 1 October – 20 December (for quarterly declarants)

For monthly declarants the advance payment is in principle equal to the net amount of VAT due on the transactions performed as from 1 December up to and including 20 December of the current calendar year. This advance must be paid before 24 December and the correctness of the amount must be proven.

Quarterly declarants also pay an advance on 24 December of each year, which is in principle equal to the net amount of VAT due on the transactions performed as from 1 October up to and including 20 December of that year. To determine the amount due, the taxpayer must draft an interim VAT return (for the period up to 20 December). This return does not need to be filed, but must be available in case of a VAT audit.

The advance must be reported in the VAT return for December (monthly declarants) or Q4 (quarterly declarants) in box 91. If the interim VAT return resulted in a VAT due of 0.00 EUR, this amount must be reported in box 91.

 

November/third quarter as reference period

Alternatively, monthly/quarterly declarants may also opt to pay the VAT amount which resulted from the filed VAT return for November (monthly declarants)/Q3 (quarterly declarants). In this case, the VAT amount due in this period (box 71) will be paid as advance.

It can be opted to not pay an advance if the previous VAT return resulted in a refundable VAT amount (amount reported in box 72).

If the above option is chosen, nothing may be reported in box 91 of the December/Q4 VAT return.

 

Contact

Questions regarding this subject can be addressed to one of our VAT specialists, or you can send an e-mail to [email protected]: