Filing and payment of self-assessed taxes ‒ primary producers and creators of works of art

Payroll reporting will change

Wages and contributions paid on 1 January 2019 or later must be reported to the Incomes Register. Read more about how to submit payroll information in the future.

What is meant by "primary producers" includes farmers and owners of woodlands who carry out a forestry activity.  Primary producers and creators of works of art are entitled to the calendar-year tax period for purposes of VAT, regardless of the size of their turnover.

File a VAT return if you are registered for VAT. You must file the return even if you haven't had any sales subject to VAT during the year. However, if you are a forestry operator with the once-a-year tax period and you haven't had any transactions (selling of timber etc) or operations subject to VAT, you do not have to file.

You can file and pay your self-assessed taxes in MyTax. Bank transfer forms are no longer distributed to taxpayers by the Tax Administration. Instead, you must pay the self-assessed taxes to the Tax Administration's bank accounts on your initiative.

MyTax   

Alternatively, you can submit a file created by an accounting software program.

There is no need to repeat an e-filing submittal of a tax return for self-assessed taxes "just to be sure it was delivered". If you filed a return electronically, it is regarded as having successfully arrived to the Tax Administration if you received an acknowledgement of receipt.

You should only file one VAT return

Your entire operation subject to VAT must be covered by one single VAT return even though your taxable activities may be carried out in more than one location or different districts, e.g. at two separate farms.    

Don't forget your payroll reporting

If you are a primary producer or creator of works of art and you have hired someone to work for you, you must report employer's contributions by the month. If you are a regular employer, you can apply for the calendar quarter as an extended tax period.

The self-assessed tax return on employer contributions must be filed in MyTax. To use the paper form is only allowed if there is a special reason. Examples of such a special reason include a situation where an Internet connection does not work properly in the area. You don't need to obtain permission for paper filing or to inform the Tax Administration of the reason. 

Changes to how corrections are made to self-assessed taxes

As of January 2017, if you notice errors and omissions on your return, you must file a replacement return to correct them. It is no longer enough if you just inform the tax office of the amount that must be changed. The changes of how corrections must be made also concern the tax periods of earlier years.

You must always file the return

If you are VAT registered and entered in the Register of Employers, you must file tax returns for every period even if you have not had any transactions. In case of termination, you must continue to file the return until the registration periods both for VAT and employers have ended, including the final tax period.  The date of termination is deemed as the end date of the tax period. Taxes for a tax period must be filed and paid by the general due date of the second calendar month after the month of termination.

Casual employers who are not on the Tax Administration's register of employers are not required to file tax returns for the months when they pay no wages.

However, if you are a forestry operator with the once-a-year tax period and you haven't had any transactions (selling of timber etc) or operations subject to VAT, you do not have to file.

The Tax Administration imposes late penalty charges for overdue returns. In the case of non-filing, the Tax Administration will assess the reportable amounts by estimation.

Extended tax periods for primary producers and creators of works of art

The calendar year is the VAT tax period for primary producers and creators of works of art, regardless of the size of their turnover.  This only applies to individual primary producers, or estates or consortia operating a primary production, and creators of works of art (within the meaning of § 79 c, VAT Act) who do not operate another trade or business liable to VAT.  However, primary producers or creators of works of art have the option to ask for the shorter tax periods, either the calendar quarter or the calendar month.

Newly established businesses may use the Start-Up Notification (Forms Y1 - Y3) or the Request form for change of reporting and payment periods (Form 4071e). Businesses that are already on the Tax Administration's registers can use MyTax, the 2017 Notifications on changes form (Y4 – Y6) or the Request form for change of tax period of self assessed taxes (Form 4071e).

Primary producers and creators of works of art are entitled to have the calendar-yearly tax period for filing and paying VAT.  However, they may, on application, have the calendar quarter as their tax period for payroll withholding, payments of the employer's health insurance contribution and taxes-at-source if their turnover does not go over the 100,000 euros and if no overdue taxes or missing tax returns are on record.

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