What the advance return actually calculates
The Umsatzsteuervoranmeldung is a simple net calculation, repeated every period rather than saved for once a year:
Output VAT (the VAT you charged clients) minus input VAT (Vorsteuer, the VAT you paid on business purchases) equals what you owe the Finanzamt — or, if input VAT is higher, what they owe you.
It was never your money either way. You collect VAT from clients as a pass-through and reclaim what you paid suppliers, and the advance return settles the difference on a rolling basis instead of once a year.
How often you file: monthly, quarterly or not at all
You don't pick your filing frequency freely — the Finanzamt sets it, largely based on your VAT liability the previous year, and tells you directly. New businesses are generally required to file monthly for their first two calendar years regardless of turnover, after which the ordinary thresholds apply.
| Prior year's VAT liability | Typical filing frequency |
|---|---|
| Above the higher threshold | Monthly |
| Between the two thresholds | Quarterly |
| Below the lower threshold | The Finanzamt may waive advance returns and require only the annual return |
| Kleinunternehmer | Exempt entirely — no VAT is charged, so nothing to advance-file |
The exact euro thresholds have shifted in recent reforms, so treat this as the shape of the rule rather than fixed numbers — your notice from the Finanzamt states your assigned frequency directly, and a Steuerberater can confirm the current cut-offs.
The deadline and the extension nearly everyone applies for
The standard deadline is the 10th of the month following the reporting period. Most businesses that file monthly or quarterly apply for a Dauerfristverlängerung — a permanent one-month extension, moving your effective deadline to the 10th of the month after that instead.
The extension isn't free for monthly filers: it requires paying a Sondervorauszahlung (special advance payment), essentially a deposit equal to roughly one-eleventh of the previous year's VAT liability. It isn't lost money — it's credited against your December advance return. Quarterly filers can generally get the extension without this deposit.
What comes after: the annual VAT return
All the period-by-period advance returns feed into one annual VAT return (Umsatzsteuerjahreserklärung), which reconciles the full year and corrects any small discrepancies. It follows the same deadline as your other annual filings — generally 31 July of the following year, extended automatically to a later date when filed through a Steuerberater.
Selling to other EU businesses
If you invoice VAT-registered businesses in other EU countries, you generally also need to submit a Zusammenfassende Meldung (recapitulative statement, sometimes called an EC Sales List), reporting those supplies separately by customer and country. It follows its own deadline — the 25th of the month following the reporting period — distinct from the VAT advance return date.
What happens if you're late
A late advance return can trigger a late filing surcharge (Verspätungszuschlag), and a late payment adds interest on top through a late payment surcharge (Säumniszuschlag). Beyond the immediate cost, repeated lateness makes the Finanzamt more likely to shorten or revoke your Dauerfristverlängerung, or in more serious cases to demand security deposits before granting further extensions.
Filing this every month gets easier to automate than it looks. See our guide to automating your bookkeeping for how software can draft the return from transactions you've already booked.
Frequently asked questions
Do Kleinunternehmer have to file VAT advance returns?
No. Businesses using the Kleinunternehmer exemption don't charge VAT and are exempt from advance returns entirely, since there is no VAT to reconcile.
What's the difference between the advance return and the annual VAT return?
The advance return reports VAT for a single month or quarter as you go. The annual return reconciles the whole year afterward, correcting any small discrepancies.
What is the Dauerfristverlängerung and does it cost anything?
It's a permanent one-month filing extension. It doesn't carry a fee itself, but monthly filers must pay a special advance payment, credited against the December return.
What happens if my advance return shows a refund instead of a payment?
You still file on the same schedule. If input VAT exceeds output VAT for the period, the Finanzamt owes you the difference and pays it out after processing the return.
Can my VAT filing frequency change?
Yes. The Finanzamt reassesses your required frequency based on your prior year's VAT liability, so a growing or shrinking business can move between monthly, quarterly, or an exemption from advance returns altogether.