What is a supplementation?
You use a supplementary statement when you notice that a previous VAT return is incorrect. By doing so, you correct amounts you have over- or underdeclared. This may involve errors in turnover, input tax or other components of your return. You fill in a separate form via Mijn Belastingdienst Zakelijk or your accounting software. The supplementary statement does not replace the previous return but adds a correction. The Tax and Customs Administration processes this correction and then sends a refund decision or an additional tax assessment. The aim is that your VAT position is still correct so that your records remain complete and correct.
When should you file a VAT supplement?
You file a replenishment as soon as the correction exceeds a thousand euros. It is the difference between what you declared earlier and what you calculate now. The sooner you rectify this the better because otherwise you may incur interest and sometimes a fine. Corrections under a thousand euros you can process yourself in the next regular VAT return. You can submit a supplementary declaration up to five years after the year in question. This means you have a long time but you don't have to wait because timely correction prevents problems. At each year-end, check that your VAT for the year is completely correct.
Recovery corrections under a thousand
For minor errors, you don't need to use a supplement. You process the difference in your next VAT return. You adjust the relevant box and add or subtract the corrected amount. This way you correct without an extra form.
Correcting VAT returns
When correcting your VAT return there are two situations. You have declared too much VAT or you have declared too little VAT. In both cases, you submit the supplementary assessment using the same form but the processing by the tax authorities differs. It is important that you only pay after receiving an additional tax assessment so that you pay with the correct payment reference. For refunds, you will automatically receive a decision. Make sure you keep an eye on the Tax Administration's mail after your supplementary assessment.
Too much VAT declared
If you have declared too much VAT, you will get this amount back. The tax authorities will send a decision stating the amount to be refunded. The payment then follows in your account. Sometimes the Tax Administration settles this with other outstanding amounts. The processing usually takes several weeks. This process happens automatically after you send the suppletion.
Underdeclared VAT
If you have underdeclared VAT, you will receive an additional tax assessment. This will state the amount you have to pay plus any interest. Only pay the amount after you have received the assessment so that you use the correct payment reference. The tax authorities always specify a payment term that you must adhere to.
How to submit a VAT supplement
You submit a suppletion digitally. You can do this via My Tax Business, your accounting software or through your adviser. In the form, you re-enter the figures for the period you are correcting. You enter the correct amounts and submit the form. You can correct one period but also a whole year if you have found several errors. After sending, you do not receive an immediate confirmation but the Tax Administration processes the form and sends the necessary message afterwards. Allow for a processing time of several weeks.
How often can you submit a supplementary payment
You may file a replenishment as many times as necessary. There is no limit as long as you stay within the five-year period. Do you discover later that you made another mistake in the same period? If so, always wait for the response to your earlier replenishment first. Only then can you object if something is wrong. This way, you avoid double calculations and your file with the Tax Administration remains clear. Many entrepreneurs submit one supplementary statement per year when the annual figures have been finalised.
Tax interest and penalties
Interest may be charged on a replenishment. This happens when you correct too late or when the amount is only determined later. Interest starts to accrue from the end of the year to which the VAT relates. If you submit a timely supplementary correction, the interest remains limited. Voluntary rectification prevents penalties. If you do nothing and the Tax Authorities discover the error themselves, a penalty may follow.
Adjust or resubmit submitted replenishment
If you made a mistake in a previously submitted supplementary assessment, you do not immediately file a second supplementary assessment. You first wait for the refund decision or additional tax assessment. Then you file an objection and submit the correct amounts. Mention in your objection why the previous supplementary statement was incorrect and which figures are correct. Only if there is no response because there was nothing to offset can you submit a new supplementary statement. This keeps your administration clear and prevents various supplementary statements from being mixed up.
