Germany rules cheque payments of VAT may trigger late penalties

The German VAT authorities have issued a late payments warning on cheque payments.

The German VAT office has issued guidance on the deemed payment date for cheques submitted for the settlement of monthly VAT liabilities.  The authorities have warned German VAT registered businesses that they will not consider the VAT settlement as made for a minimum of three days following the receipt of a cheque.

German VAT returns and payments are required to be submitted by the 10^th of the month following the end of the reporting period.  Therefore cheques (and returns) must be received by the authorities at least by the 7^th of the month following the VAT period.

Failure to follow this guidance could result in late penalties.

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