Filing and paying self-assessed taxes when business is terminated or when the tax period is changed

If a primary producer, creator of works of art, or a VAT taxpayer with the calendar year tax period terminates their business in the middle of the period, the date of termination is deemed as the end date of the tax period. The tax must be filed and paid by the general due date in the second month that comes after the month of termination.

Example 1: the tax period is the calendar year, and September is the final month of operation

The company goes out of business in September. The VAT return for the period from January to September must be filed, and the VAT paid, on 12 November at the latest.  

Example 2: the tax period is the calendar year, and December is the final month of operation

The company goes out of business in December. It must file its VAT return for January to December and pay the VAT by end of February.

Your tax period can be changed to a shorter period during the ongoing tax period, as well. In this case, you must file a return for the months belonging to the old tax period and pay your taxes for them sooner than you would with the old tax period’s usual due date. You must file the return and pay the taxes by the general due date of the month following the first calendar month of your new tax period. Example: If your tax period is changed from a quarter to a month on 1 March, you must file the return and pay the taxes for January and February by 12 April.

Example 3: the tax period has been the quarter and is now being changed into a shorter period

In May, a company filing by the quarter submits an application to the Tax Administration asking for the monthly tax period as from 1 June. The company must file a return for the tax period preceding the change date (spanning the time between April 1 and May 31) by the general due date for July, i.e. by 12 July.

The return for June must be filed and the payment of employer's contributions must be made by 12 July, and the payment of VAT must be made by 12 August.

Example 4: the tax period has been the calendar year and is now being changed into a shorter period

Starting October, a company changed its tax period into the month. It used to be the calendar year. The VAT return for the January-to-September period must be filed and the VAT paid by 12 November, and the return for October must be filed and the VAT paid by 12 December.

 

Key terms:

AnswerBank

Go to AnswerBank