What should an entrepreneur know about VAT returns?

If a business is registered for VAT, it also incurs an obligation to submit VAT returns. For many entrepreneurs, the topic may initially seem complicated, but understanding the basics will simplify the company's financial management and cooperation with the accountant.

What is a VAT return?

A VAT return is a report that a business submits to the Finnish Tax Administration with information relating to value added tax. The declaration is based on the company's accounting records and reports, among other things, sales and purchase data that affect value added tax.

These details determine whether the company has VAT to pay or is entitled to a VAT refund.

VAT returns are usually submitted electronically, for example via OmaVero or through an accounting software used by an accountant.

How often is the VAT return submitted

How often a VAT return is submitted depends on the company's tax period. The tax period can vary depending on the company's situation. Entrepreneurs do not need to memorise all the deadlines for submitting returns. The most important thing is to know your own company's practices and ensure that the necessary materials for accounting are submitted on time.

What information is needed for the VAT return?

The VAT return is prepared based on the company's accounting. Therefore, it is important that sales and purchase invoices, receipts, and other documents belonging to accounting are delivered to the accountant according to the agreed schedule.

When the accounts are up to date, preparing the VAT return is also smoother, and any missing information can be identified in good time.

Why is it important to submit VAT returns on time?

Submitting the VAT declaration is one of the company's statutory obligations. If the declaration or its associated payment is delayed, consequences imposed by the Finnish Tax Administration may arise.

Regular bookkeeping and timely delivery of materials make it easier to prepare reports and reduce rush as deadlines approach.

What if the company has not had any activity?

If a company is registered for Value Added Tax, the obligation to file a return may remain even when the company has had no VAT-taxable activities during the tax period.

If there is uncertainty regarding your own situation, it is advisable to clarify the matter with an accountant or the Finnish Tax Administration.

Accountant support

An entrepreneur doesn't need to know all the details of value-added tax (VAT). When bookkeeping is handled regularly and the necessary documents are submitted on time, preparing VAT returns is also straightforward.

It is advisable to seek advice from an accountant also if changes occur in the company's operations or if there are unclear situations relating to value added tax.