How to file your first VAT return

Having to file your first VAT return can seem daunting, but in reality it is a manageable process once you grasp its basic logic and know what the tax office expects of you. Below you will find a clear procedure that takes you from preparing the supporting documents all the way to sending the return to the tax administrator, including tips on how to avoid the most common beginner’s mistakes and unnecessary requests.

When the return is filed

A VAT payer files a tax return for each tax period, which is usually a calendar month or a quarter. Which period applies to you depends on the rules and on your turnover, and new VAT payers generally start with a monthly period. The deadline for filing and for paying the tax is laid down by law, and it is advisable always to check it in the current calendar of tax obligations, as deadlines can shift because of public holidays and weekends, and the rules themselves also change.

Preparing the supporting documents

The basis of a correct return is having your documents in order. Before you fill in the form, compile all the invoices issued and received for the period and check their particulars, that is, the identification details, dates, amounts and the correct rate. A missing or incorrect document is best dealt with before filing, not only after a request from the tax office, when a penalty may already be looming.

• issued invoices with the tax correctly applied
• received invoices from which you claim a deduction
• cash register receipts and internal documents
• supporting documents for cross-border supplies and advance payments

Filling in and sending the return

The return is filed exclusively electronically through the portal of the Financial Administration (Finančná správa). You transfer the data on output VAT and deductible tax into the form, and the system calculates the resulting position towards the state budget, that is, either your own tax liability or an excess deduction. Together with the return, you usually also file the VAT control statement and, for trade within the EU, the EC Sales List. These statements must be consistent with the return, otherwise the tax office will ask you for an explanation.

Payment or excess deduction

If the result is a tax liability, you pay it by the deadline to the correct account number with the assigned variable symbol so that the payment is allocated correctly. If deductible tax predominates, an excess deduction arises, which the tax office will refund to you once the conditions are met. It is precisely in the first period, when a company often invests and makes purchases, that the deduction tends to be high, so have your documents thoroughly prepared in case of an audit.

The most common beginner’s mistakes

Beginners often forget the VAT control statement, mix up tax periods or claim a deduction from a document that does not meet the requirements. Other mistakes include assigning a supply to the wrong period, overlooking a cross-border transaction or claiming a deduction on a private expense. These errors lead to requests from the tax office and sometimes to penalties, which can easily be avoided with thorough checks.

When an expert’s help pays off

Before you decide to file your first VAT return entirely on your own, it pays to discuss the first period with an accountant, who will check the logic of the calculation and reconcile the return with the statements. Once the correct procedure has been set up, you can then repeat it in the following periods with greater confidence and less risk of overlooking something important.

Related articles: The VAT control statement: what it contains and what to watch out for, Mandatory VAT registration: turnover and conditions, The EC Sales List for trade within the EU.

Frequently asked questions

Do I have to file a return even if I had no sales?

Yes, a VAT payer files a return even for a period without any supplies – a so-called nil return. Failing to file is regarded as a breach of your obligations regardless of whether you had any turnover, and it can lead to a penalty.

Can a return that has already been filed be corrected?

Yes. If you discover a mistake before the deadline expires, you file a corrective return that replaces the original one. After the deadline, a supplementary tax return is filed. Check the exact procedure and deadlines against the current rules.