This can happen to many people, especially when you are a business owner juggling all the different tasks involved. However, there is a solution to this, and we will tell you much more about it now.
What happens when you forget to report VAT?
You must always report VAT on time, otherwise you will be charged around DKK 800 in fees. SKAT will then make an estimate of your turnover and the VAT due. SKAT’s estimate can end up being expensive for you, as they usually assume a high turnover. If this error occurs four times in a row, you can, in the worst case, lose your VAT registration. The delay in reporting may be due to you lacking money and wanting to apply for an interest-free VAT loan. Therefore, you should pay special attention to reporting on time, as you cannot get an interest-free VAT loan if your reports have not been timely.
How to solve this problem?
Fortunately, this can be resolved, but you cannot avoid the approximately 800 DKK you have been charged for late reporting. You always have the option of contacting SKAT directly. You can tell them why the error occurred, that you will correct it immediately, and that you will always report on time in the future. This will initially be a good barrier to break with the tax officer, and they will then do their best to help you through. At the same time, it is important that you have your VAT information ready when you talk to SKAT. This is partly because you may not have the money to pay it all at once and can therefore negotiate an installment plan, and partly because it shows that you have your numbers under control.
How do you avoid this in the future?
We learn fastest when we make mistakes.
We learn the fastest when we make mistakes. You now have the opportunity to improve for the next VAT return, and you can do this in many ways. We have created a Financial Calendar that gives you all the important deadlines that you can note on your phone so that you are always up to date. In addition, you now know that you will never have to handle your VAT return at the last minute, and therefore outsourcing the accounting function can be a good investment so that you never have to go through the same obstacles again. You can now focus on running your business, knowing that your deadlines and figures are always up to date.
