How to make corrections to a special scheme VAT return that you have submitted previously
If you detect an error on a VAT return that you submitted, no new return can be submitted as a replacement. Instead, you must submit another VAT return in MyTax later to have the error corrected on that return.
No “replacement return” exists: you cannot submit a new return for the tax period in question, which would contain the corrections that are needed. This also means that if you submitted your return, you also have to pay the VAT as the submitted return indicates it, although you had detected an error on that return.
VAT returns have a separate section for making corrections. Type the Member State of consumption, the tax period, and the euro amount of difference that results from your correction.
You can make the necessary corrections in MyTax within 3 years of the deadline of the original special-scheme VAT return. After the 3-year time limit, any corrections and payments of the related VAT must be sent to the Member State of consumption, the country where you sold the goods or services.
Example 1: The company’s VAT return for January to March (Q1) contains errors in the VAT details for Germany. For Q1, the amount on the return is €1,000 while it should be €800.
The company remedies the errors on its next period’s return, i.e. the (Q2) return for April to June. For the April to June period, Q2, the company is reporting €1,300 of VAT to Germany and €100 of VAT to Denmark.
The return for this period must indicate the tax period, the Member State of consumption, and the euro amount of difference:
Special Scheme VAT return Q2/2022
| Tax period | Member State of consumption | Tax amount, € |
|---|---|---|
| Q2 | Germany | 1,300 |
| Q2 | Denmark | 100 |
Corrections to earlier tax periods
| Tax period | Member State of consumption | Tax amount, € |
|---|---|---|
| Q1 | Germany | - 200 (this had been 1,000) |
VAT payable as declared on Q2/2022 return
| Tax period | Total tax payable, € |
|---|---|
| Q2 | 1,200 |
On the Q2 return, the “total tax payable” of €1,200 consists of the German VAT (€1,300 - €200) and the Danish VAT (€100). The company must pay the above total in its entirety. Finland will remit €1,100 of VAT to Germany and €100 of VAT to Denmark.
As a result, the company’s correction can either raise or reduce the period’s payable amount, i.e. the amount for the July to September period (Q2). However, the company’s correction causes no actual change to the amounts reported originally for the (Q1 and Q2) periods. Instead, the company must make the payments exactly as it files its returns, i.e. pay the taxes for these two periods as they are.
Example 2: The company made a mistake when filing its return for April to June (Q2). An amount of €300 in VAT to Denmark was filed. The Member State should have been France, not Denmark.
The company remedies the mistake on its return for July to September, the Q3 return. The company also reports €1,000 of VAT to France for the July to September period.
It is enough if the company just indicates the tax period, the Member State of consumption, and the euro amount of difference that results from the correction:
Special Scheme VAT return Q3/2022
| Tax period | Member State of consumption | Tax amount, € |
|---|---|---|
| Q3 | France | 1,000 |
Corrections to earlier tax periods
| Tax period |
Member State of consumption |
Tax amount, € |
|---|---|---|
| Q2 | Denmark | - 300 (this had been 300) |
| Q2 | France | 300 (this had been 0.00) |
VAT payable as declared on Q3/2022 return
| Tax period | Total tax payable, € |
|---|---|
| Q3 | 1,300 |
On the Q3 return, the “total tax payable” of €1,300 consists of the French VAT (€1,000 + €300). The company must pay the two taxes in their entirety. Finland will then remit €300 of VAT to France.
The Danish VAT above is not included in the calculation of the “total tax payable” in Q3 because it is negative. Finland will send information about the corrected facts and amounts to Denmark. The Danish authorities will refund the excess amount concerning Q2 to the company in accordance with Danish national legislation.
From the above, it follows that no transfers from one Member State to another are possible. In other words, Denmark, the Member State of consumption, does not send the amount discussed above to Finland for refunding; or does not send it to France, either, for the French accounting of VAT.
Frequently asked questions
After you have filed your return and paid the VAT accordingly, the Tax Administration passes the information and the payments on to the Member States of consumption.
If you detect an error on the return you submitted, you must make the necessary corrections on a VAT return that you submit later. The taxes must also then be paid as they were filed on your return.
After the VAT has been passed on to a Member State of consumption, the Finnish Tax Administration cannot refund it. Instead, each one of the Member States of consumption sends refunds for any excess amounts, following the refund rules in accordance with their national legislations.
If it becomes necessary, contact the Member State of consumption when you need to know about interest charged for late payment, other consequences, or about how refunds are administered.