VAT Advance Return: The Complete Guide for Self-Employed

The VAT advance return (UStVA) is one of the regular obligations of every entrepreneur who shows VAT. Here you'll learn everything you need to know - from deadlines to correct submission via ELSTER.

What is the VAT advance return?

With the VAT advance return, you regularly report to the tax office:

• How much VAT you've charged on your invoices
• How much input tax you're claiming from incoming invoices
• The difference (tax liability or refund)

The principle is simple: You collect the VAT for the tax office and forward it - minus the input tax you've paid yourself.

Who must submit the UStVA?

Obligation to submit

• All entrepreneurs who show VAT
• In the founding year and following year: always monthly
• Thereafter: depending on the previous year's tax liability

Exempt from UStVA

• Small business owners according to § 19 UStG (no VAT = no advance return)
• Entrepreneurs with less than 1,000 € annual tax liability (exemption possible)

Monthly or quarterly?

The frequency depends on your VAT liability in the previous year:

Important: With refund surplus (more input tax than VAT), you can apply for monthly submission to get money back faster.

The most important deadlines

Submission deadline

The UStVA must be with the tax office by the 10th of the following month:

• January UStVA: by February 10
• Q1 UStVA: by April 10
• etc.

Permanent extension

With the permanent extension, you get one more month:

• Apply once via ELSTER
• With monthly submission: 1/11 of the previous year's liability as special advance payment
• With quarterly submission: no special advance payment needed

Example: With 11,000 € annual liability, the special advance payment is 1,000 €, which is credited to the December advance return.

How to fill out the UStVA

Step 1: Record sales

Enter your taxable sales:

• Line 81: Taxable sales at 19%
• Line 86: Taxable sales at 7%
• Line 89: Intra-Community supplies (tax-free)
• Line 91: Tax-free sales with input tax deduction

Step 2: Calculate VAT

ELSTER calculates automatically:

• 19% of line 81 = line 81 tax
• 7% of line 86 = line 86 tax

Step 3: Deduct input tax

• Line 66: Input tax from invoices of other entrepreneurs
• Line 61: Input tax from intra-Community acquisitions
• Line 67: Input tax from advance payments

Step 4: Calculate tax liability

ELSTER calculates the tax liability (line 83):

• VAT minus input tax = tax liability (positive) or refund (negative)

ELSTER: Step by step

1. Registration

If not already done, register at www.elster.de. Activation takes a few days (letter with activation code).

2. Call up form

• Login to ELSTER
• "Forms & Services" → "All Forms"
• "VAT" → "VAT Advance Return"

3. Check master data

• Tax number
• Advance return period (month or quarter)
• Year

4. Enter data

Transfer the values from your accounting to the corresponding lines.

5. Check and send

• Perform "plausibility check"
• Correct errors
• Sign electronically and send
• Save transmission confirmation

Payment of VAT

Direct debit

The most convenient option: Grant the tax office a SEPA direct debit authorization. The amount is automatically debited on the due date.

Bank transfer

Alternatively, you transfer yourself to your tax office's account. Important: Specify purpose with tax number and advance return period.

For refund

If the tax office owes you money (input tax surplus), the amount is transferred to your registered account.

Avoid common mistakes

Mistake 1: Miss deadline

Late submission leads to late payment surcharges (at least 25 € per month). Use the permanent extension!

Mistake 2: Forget input tax

Every incoming invoice with VAT entitles you to input tax deduction. Collect all receipts carefully.

Mistake 3: Wrong period

Pay attention to the correct quarter or month. A correction is cumbersome.

Mistake 4: Incorrectly record intra-Community sales

Deliveries to EU companies are VAT-free, but must still be reported (line 89).

Mistake 5: Forget advance payments

Received advance payments immediately trigger VAT liability - even if the service hasn't been provided yet.

Summary report (ZM)

For intra-Community supplies, you must additionally submit a summary report:

• Deadline: 25th of the following month
• Content: VAT ID of recipient and tax base
• Submission via ELSTER

Tips for practice

1. Keep accounting current

The better your ongoing accounting, the faster the UStVA is created. Ideally, you post weekly.

2. Plan payments

Set aside about 15-20% of your net income monthly for VAT. This avoids nasty surprises.

3. Use permanent extension

The one month reprieve gives you buffer and reduces stress.

4. Involve tax advisor

For more complex situations (EU business, reverse charge), professional support is worthwhile.

Conclusion

The VAT advance return is routine - once you've understood the process. With proper accounting and ELSTER, submission is done in a few minutes. Use the permanent extension, plan your tax payments, and the UStVA becomes a routine process.

Clever Invoice helps you: All sales are automatically recorded with the correct tax rate, and you can export the values for the advance return with a few clicks.