1 in 10 young entrepreneurs forgets a VAT return: how do you avoid a fine?

As a young entrepreneur, you know how valuable your time (and money) is. However, figures from the tax authorities show that 1 in 10 young entrepreneurs sometimes forgets their VAT return. That can cost you dearly, because filing a report too late or not usually means a fine. And of course, you'd rather put that money into your company!

Fortunately, the tax authorities will help you out. With a new campaign, they want to remind the growing group of young entrepreneurs of their VAT return in time and explain how to prevent mistakes.

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More and more young entrepreneurs, but also more mistakes

The number of entrepreneurs under 26 is growing rapidly: in 2023, there were already 201,700, compared to 180,800 in 2022. But with that growth comes obligations, such as the VAT return. And that's where things still often go wrong.

Figures show that young entrepreneurs make more mistakes than their older colleagues: 11.3% of their returns was submitted too late in 2023, compared to only 4.7% with entrepreneurs over 25. Fortunately, with some smart tips, you can easily ensure that your VAT return does run smoothly.

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Tips for the next declaration: deadline Friday, January 31

The tax authorities have a few practical tips for you so that you can easily avoid the penalty:

1. Always report it. Did you have no turnover or costs in the fourth quarter of 2024? However, you must file a report. It is mandatory for every entrepreneur, even if you have earned nothing.
2. Be on time. The deadline for your declaration for October to December 2024 is Friday January 31. Remember to pay immediately, otherwise you still run the risk of being fined.
3. Make your declaration and payment online. Log in with your DigiD at My Business Tax Administration to file your VAT return. With iDEAL, you can pay immediately, and everything — such as the amount and your payment reference — is automatically filled in for you.
4. Don't forget your start-up costs. Have you just started a company and bought a laptop or camera, for example? You can claim a refund of the VAT on these expenses. Nice bonus!
5. Do you have a car? Use the calculator. Do you own a company car and do you also drive it privately? Or vice versa: do you use your private car for business? Then this has consequences for your VAT. Complicated? Check out the calculation tool 'VAT or VAT deduction on your car.
6. Forgot something in a previous declaration? Fix it now. If it is less than 1000 euros, you can correct it in your current return. For larger amounts, use the “sales tax supplement form”. You can find this form at My Business Tax Administration.
7. Never (anymore) too late. Avoid being late again next quarter. Set a reminder via My Business Tax Administrationso that you get a call on time.

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Can't you figure it out?

The tax authorities are there for you. Watch the helpful videos at belastingdienst.nl/young-entrepreneurs or call them toll-free at 0800-0543. You don't have to do it alone!

With these tips, VAT reporting is a piece of cake, and you can spend your time and money on what's really important: growing your business 💪