Companies with a VAT number must submit accounting reports monthly. The taxable period is one month, and VAT returns must be submitted to the tax authority (even for the months when there could be nothing to declare) by the 20th day of the month following the taxable period.
In a VAT return (or ‘declaration’), a taxable person (business) gives the tax authorities in the EU country where they are registered information about:
- their taxable (taxed/exempt) transactions;
- the VAT they have charged their customers (output tax) and been charged by their suppliers (input tax);
- the amount of VAT payable (or refundable).
Basically, VAT Return calculates how much VAT a company should pay or be reimbursed. In order to file a VAT Return, a company must collect bank statements for all accounts, incoming and outgoing invoices, as they serve as a basis for the declaration itself and must be listed in the annex. Outside of that, companies are obliged to store all invoices electronically for the next 7 years.