Germany: Annual VAT returns: new deadlines and interest rules

Due to the extraordinary burdens for the German taxpayers and tax authorities as a result of the impact of Covid-19, the war in the Ukraine and extensive new land tax declaration requirements in Germany, the deadlines for the submission of the annual VAT returns for the year 2020 have been extended once more by the Fourth “Corona Support Law” (“Corona-Steuerhilfegesetz”) dated 19 June 2022. Similar regulations have been stipulated for the tax years 2021 to 2024. For the tax year 2025, the general filing deadlines shall apply again (end of February of the second following year).

In this connection, the start of the interest run for outstanding VAT amounts for the periods 2020 to 2024 has been adapted (usually the interest run starts 15 months after the end of the respective calendar year in which the tax was incurred).

Below is a summary of the special filing deadlines and interest runs for 2021 to 2024:

In addition, the interest rate for outstanding VAT amounts has been changed for interest periods as of 1 January 2019 from 6 per cent per annum to 1.8 per cent per annum, based on the second law regarding the changes of the German Tax Code (AO) and the implementation law for the German Tax Code (EGAO) dated 12 July 2022. The changes were made after the previous interest rates had been determined to be unconstitutional in 2021.

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