Permanent extension
Permanent extension is a term from the field of sales tax law . It is regulated in § 16 and § 18 of the Sales Tax Act (UStG) and §§ 46 to 48 of the Sales Tax Implementation Ordinance (UStDV). With the application for a permanent extension of the deadline, an entrepreneur wants his tax office to grant him a one-month period to submit his advance VAT return. An approved long-term extension applies not only to the advance VAT return following the application, but also to all advance VAT returns following the application. It does not apply to the EU sales list . However, the application for a permanent extension is not permitted for the annual sales tax return.
Tax classification
The application for a permanent extension as such is neither a tax return nor a tax return within the meaning of the Tax Code (AO). Nevertheless, this is a formal application ( § 18 Paragraph 6 UStG, § 48 UStDV). While the VAT return of a tax assessment under the subject to review equal standing ( § 168 AO) and the amending provisions of the tax bills is subject, it is in the granted permanent extension to an other tax administrative act . It is therefore subject in particular to the other amendment provisions of § 130 , § 131 AO. The special advance payment mentioned below is in turn a tax return, so the same change regulations apply to it as for sales tax advance returns .
Formal requirements
Local jurisdiction of the tax office § 21 AO
Domicile, seat or management of the entrepreneur in Germany
If the entrepreneur has his place of residence , registered office or management in Germany, Section 21 AO, the application for a permanent extension of the period, such as the advance VAT return, must be submitted to the tax office from whose district the entrepreneur operates his company entirely or predominantly within the scope of the law.
Residence, seat or management of the entrepreneur abroad
The responsibility of the tax offices for foreign entrepreneurs is divided according to foreign countries. I.e. In Germany only one tax office is responsible for each foreign country. For example, the tax office in Konstanz processes all applications for permanent extensions for entrepreneurs with residence, registered office or management in Liechtenstein.
Note on local jurisdiction
According to the pure legal text, receipt of the application by any German authority is sufficient. However, an application can only be processed if the competent authority and the competent body within the authority are aware of the application. As long as the application is still on its way to the competent authority, the authority will actually behave as if no application had been made.
Electronic delivery or delivery on paper
The application is generally submitted electronically (see also Tax Data Transfer Ordinance - StDÜV). However, in individual cases the tax office can, at its own discretion, allow the application to be submitted on paper to avoid undue hardship .
Timely receipt of the application
Obligation to submit monthly sales tax returns
The "monthly payer" must submit his application by 10.02 at the latest. submitted so that it can take effect for the current calendar year. In the first year after founding, every entrepreneur is a "monthly payer". A change to "quarterly payer" is not possible in the first year.
Obligation to submit quarterly advance VAT returns
The "quarterly payer" must submit his application by April 10th at the latest. submitted so that it can take effect for the current calendar year.
Exemption from submitting advance sales tax returns
For someone who is not obliged to submit advance VAT returns, the application has no effect. Thus, the application is nowhere.
Special feature: special advance payment
For entrepreneurs with the obligation for the monthly release of VAT returns, the permanent extension was made only under the edition of a special advance payment of registration. The special advance payment amounts annually to 1/11 of the total of the sales tax advance payments for the previous calendar year ( Section 47 (1) and Section 48 (2) UStDV). If special advance payments were already made in the previous year, these must be deducted from the total of the sales tax advance payments of the previous year for the calculation of the special advance payments for the current year. The special advance payment is registered on the same form as the permanent extension. In the advance VAT return for December, the entrepreneur will then offset the special advance payment as a reimbursement. This procedure is intended to skim off a possible interest rate advantage, which the entrepreneur obtains by paying the sales tax advance payments later. The special advance payment is on February 10th. to be registered and paid annually.
- Example: An entrepreneur registered a special advance payment in the amount of EUR 16,000 in the past calendar year. In the past calendar year, he also registered advance VAT payments totaling EUR 50,000. In the advance VAT return for December last year, he had his special advance payment of EUR 16,000 credited. The tax actually paid is therefore EUR 50,000 + EUR 16,000 = EUR 66,000. The special advance payment for the current calendar year is therefore 66,000 EUR × 1/11 = 6,000 EUR (to be registered and paid by February 10 of the current year).
Temporal effect of the permanent extension
Start of the permanent extension
- The application has been effectively received by the tax office if the formal requirements are met and it has been received on time.
- The request was not rejected by the tax office (a Grants modest the tax office issued not). Reason for rejection can be any reference that leads to the conclusion that the state's tax claim appears to be jeopardized by a permanent extension of the period ( Section 46 sentence 2 UStDV). Here is just an exemplary and by no means complete list of possible reasons for rejection:
- an ongoing investigation of the tax investigation
- a conviction in criminal tax proceedings ( warning , fine , imprisonment )
- an ongoing criminal tax procedure (even if it has not yet been opened)
- a completed tax offense procedure (warning, fine )
- an ongoing tax offense procedure (even if it has not yet been opened)
- Findings from tax audits , special sales tax audits , sales tax reviews (e.g .: control notifications cannot be traced in the company's accounting)
- Failure of the entrepreneur to comply with tax obligations in the past (e.g .: late filing of tax returns and / or tax returns, late payment of tax debts)
- general clues that result from the internal risk management of the German tax authorities (indications may indicate participation in a sales tax carousel business , indications may indicate an imminent bankruptcy )
Note: The above information can be directed against the entrepreneur himself as well as against employees of the management . Misconduct and negligence on the part of a contractor , employee , legal representative or contractual representative must regularly allow the client , employer , representatives to apply against them.
Termination of permanent extension
Both the entrepreneur and the tax office can revoke the permanent extension . The tax office can revoke the permanent extension if the tax claim appears to be at risk. The entrepreneur, on the other hand, does not need a reason for the revocation.
The permanent extension therefore also applies beyond the end of the calendar year, even if the taxpayer does not register a special advance payment for VAT (this will then be remindered by the tax office).
Effect of the permanent extension
The permanent extension means that the entrepreneur does not have to submit his advance VAT returns to the tax office until one month later. If the day of delivery falls on a Saturday, Sunday or public holiday, it must be delivered on the next working day.
| Advance VAT return (UStVA) | regular submission time | Submission time with permanent extension |
|---|---|---|
| UStVA January 2017 and the latest possible submission of the application for a permanent period extension 2017 and registration of the special advance payment 2017 for entrepreneurs with monthly submission of the UStVA | February 10, 2017 | March 10, 2017 |
| UStVA for February 2017 | March 10, 2017 | April 10, 2017 |
| UStVA for March 2017 | April 10, 2017 | May 10, 2017 |
| UStVA for the 1st quarter of 2017 and the latest possible submission of the application for a permanent period extension 2017 and registration of the special advance payment 2017 for companies with quarterly submission of the UStVA | April 10, 2017 | May 10, 2017 |
| UStVA for April 2017 | May 10, 2017 | June 10, 2017 |
| UStVA for May 2017 | June 10, 2017 | July 10, 2017 |
| UStVA for June 2017 | July 10, 2017 | August 10, 2017 |
| UStVA for the 2nd quarter of 2017 | July 10, 2017 | August 10, 2017 |
| UStVA for July 2017 | August 10, 2017 | 10th September 2017 |
| UStVA for August 2017 | 10th September 2017 | October 10, 2017 |
| UStVA for September 2017 | October 10, 2017 | November 10, 2017 |
| UStVA for 3rd quarter 2017 | October 10, 2017 | November 10, 2017 |
| UStVA for October 2017 | November 10, 2017 | December 10, 2017 |
| UStVA for November 2017 | December 10, 2017 | January 10, 2018 |
| UStVA for December 2017 | January 10, 2018 | February 10, 2018 |
| UStVA for the 4th quarter of 2017 | January 10, 2018 | February 10, 2018 |
Web links
- Forms: Application for permanent extension. Federal Ministry of Finance
- Information portal of the Federal Central Tax Office
- Elsterportal: Electronic transmission of tax returns and tax notifications to the tax office
Individual evidence
- ↑ Tax calendar 2017. Accessed on September 19, 2017 .
