Choose the route that fits your payment problem
Time to pay gives extra time to settle a tax debt. A payment arrangement spreads the payment over instalments. That is different from an extension for submitting your tax return: your obligation to file a return remains in place if you ask for more time to pay.
| Situation | Route | Key consideration |
|---|---|---|
| Short-term bridging finance for a levy | A maximum of four months' short deferral. | All conditions must be met; no general deferral for payment on VAT returns. |
| Need more time or payment by instalments | Standard payment arrangement for business owners. | Usually a maximum of twelve months; financial justification required. |
| Exceptional temporary problems at a viable business | Request based on exceptional circumstances. | Sometimes possible for longer than twelve months, with additional justification. |
The Tax and Customs Administration will assess your request. A submitted application is therefore not yet an approved arrangement. First, create an overview of assessments, payment dates, other debts and expected receipts. This will enable you to substantiate which solution is achievable.
When can you get a short extension of four months?
Short postponement runs for a maximum of four months from the final date for payment of the assessment. According to the conditions for businesses from the Tax and Customs Administration must include the following, among other things:
- Your total outstanding tax debt is less than €20,000. Debt with a postponement due to an objection or appeal does not count towards this.
- There are no outstanding assessments with a warrant for execution and no outstanding administrative fines.
- You have always filed timely, correct and complete returns for the taxes involved.
- There is no previous extension due to payment problems or offsetting against a tax refund that prevents this short extension.
- It is not about payment on declaration, a motor vehicle tax bill or a provisional income tax, healthcare insurance act (Zvw) or corporate income tax assessment that you are already allowed to pay in instalments.
Request a short extension by phone via the BelastingTelefoon or in writing. Have your assessment number and identifying details to hand. At €20,000 or more, your debt does not meet the stated limit; look into another arrangement instead.
And what if you cannot pay the VAT return?
Do the VAT return Well on time. A short extension is possible for an assessment; for VAT, that is only possible once an additional assessment has been issued. Contact us before the payment deadline regarding your situation and a suitable application. Do not deliberately leave the return unsubmitted in order to wait for an assessment. Failing to file or filing late, and failing to pay or paying late are separate issues and may result in additional costs.
A payment plan for a maximum of twelve months
If a short postponement is not suitable, you can with the business form for a payment arrangement make a substantiated proposal. The standard arrangement lasts for a maximum of twelve months from the date you receive it. If you previously had a short extension for this assessment, that counts towards the total period: you do not automatically get four plus twelve months.
With regular deferral, the Tax and Customs Administration takes security for the entire debt as its starting point. If you cannot provide that, ask whether the scheme for special circumstances or another exception applies. What security is ultimately required follows from the assessment and decision.
Use the business route even as a sole trader. The online standard form for individuals is not automatically the right form because the income tax assessment is in your own name.
What information and attachments do you need?
The current application form asks about your financial situation and a concrete payment proposal. In any case, gather:
- The assessment numbers for which you are applying for the arrangement.
- Annual accounts for the past two financial years.
- An interim balance sheet and profit and loss account for the current year, in accordance with the valuation instructions on the form.
- An overview of ongoing contracts and clients.
- A cash flow forecast for the next twelve months and a general forecast for two years.
- Overviews of outstanding customer invoices, supplier liabilities, financings and requested securities.
As a sole trader, you must also complete the applicable questions about your household, private income and assets. The form states what partner details are required. If you have only just started and two annual accounts do not yet exist, explain this and enclose the available figures. Do not make up missing figures.
The standard application currently goes by post according to the instructions: fill in the form, print it out, sign it and send it off with the attachments. Use the address on the official form page and keep a complete copy with proof of postage.
Make your repayment proposal realistic
The question is how much money remains available after ordinary expenses and new liabilities. A revenue forecast is insufficient for this: it is also about when customers actually pay. Take business expenses, private withdrawals and new tax payments into account.
Example: € 6,000 debt in twelve months
Without interest and additional costs, € 6,000 over twelve months requires € 500 a month. However, your forecast shows only € 350 in available disposable income. Therefore, this proposal does not fit: at least € 150 per month is missing, plus room for interest and any potential costs.
Substantiate how you will bridge that gap, for example through demonstrably lower expenses or concrete additional income. An optimistic revenue line without an expected payment date does not resolve the shortfall. This example is a calculation test, not a commitment that the Tax and Customs Administration will grant an arrangement.
Create a scenario in which a major customer pays later as well. An arrangement that only works if everything goes perfectly can quickly jam up again. Our explanation of turnover, profit and cash flow help to keep these amounts separate.
Exceptional circumstances: sometimes longer than twelve months
For a longer-term arrangement, it must be plausible, among other things, that the payment difficulties are temporary, will disappear before a certain point in time, and your business is viable. It must be demonstrably shown that the payment difficulties arose from exceptional circumstances outside the normal business risk. A temporary shortage of money alone is therefore not sufficient.
You substantiate the application with a statement. The Tax and Customs Administration refers to a self-declaration for debts of less than €20,000 and a statement from an independent expert for more than €20,000. Check which statement is needed in your situation, especially for a debt around that threshold. The official terms and conditions for exceptional circumstances describe what the statement must demonstrate.
What happens after your application?
When a request for a payment arrangement is made before the payment deadline, the Tax and Customs Administration states that it will not send a payment reminder, formal notice or warrant for that assessment while the request is being processed. That is not yet definitive approval. You can go ahead and pay according to your proposal; if it is rejected, you must take into account that the arrears will need to be paid immediately.
With later payment, statutory interest for late payment may be payable, even during a granted payment arrangement. Existing reminder and warrant costs do not simply disappear. Read the explanation of treatment, interest and costs and the final decision carefully.
Keep monitoring new tax returns and payment obligations. If you cannot meet a deadline, contact us immediately; do not simply change the schedule in your own records. If you receive a rejection, immediately check the reason and the appeal period in the letter. If there are multiple creditors or a persistent shortfall, also look into debt assistance for entrepreneurs via your local authority.
Frequently Asked Questions
Is an extension for my tax return also an extension to pay tax?
No. Submitting a tax return and paying a tax return or assessment are separate obligations. Follow the payment dates until you have been granted an appropriate arrangement or deferral for this.
Can I get another twelve months after a short extension of four months?
Not automatically. In the case of a subsequent regular arrangement, the earlier short postponement counts towards the maximum period, calculated from the date on which you received that postponement. In exceptional circumstances, a different assessment may be possible.
Does a payment arrangement with the Tax and Customs Administration cost money?
Late payment interest may be payable. Any reminder and enforcement costs already imposed also remain relevant. Please include those amounts in your proposal; simply dividing the principal sum by the number of months is not sufficient.
Does a private limited company (BV) also have to report inability to pay?
In addition, for a private limited company (bv), a timely written notification of inability to pay may be required for certain taxes, such as VAT and payroll tax. Merely calling to request a short extension does not constitute a notification. Check immediately which reporting obligation and deadline apply; the business form outlines when a written request can also serve as a notification.
