With the monthly or quarterly advance VAT return, the entrepreneur shows how much money he has to pay to the tax office - this serves as an advance payment on the VAT liability for the whole year.
This frequency, i.e. whether you have to pay monthly or quarterly, depends on the amount of your sales in the previous year. The frequency will be sent to you by the tax office in a letter.
These limits serve as a rule of thumb:
Monthly: If the sales tax liability in the previous year was more than € 7,500.
Quarterly: If the VAT liability in the previous year was between € 1,000 and € 7,500, the submission is quarterly.
Annually: The obligation to submit advance VAT returns and advance payments may be waived if the VAT in the previous year was less than € 1,000.
Good to know: Small business owners do not have to submit advance VAT returns.