Deadlines

The deadline for adjusting the RS is one month after becoming aware of the incorrect RS (Section 18a (10) of the German VAT Act [UStG]).

Consequences in the event of non-adjustment

If the company does not fulfill the obligation for adjustment tax exemption for the supply of goods or other service may be denied by the relevant tax office.

Furthermore, non-adjustment of the RS may be punished as an administrative offense with a fine of up to EUR 5,000.00 (Section 26a (1) no. 5 UStG).

Method of adjustment

Like the submission of the RS, the adjustment of the RS must take place electronically. A corresponding field must be confirmed for this purpose in the forms provided in the portals (ELSTER or BOP). The adjustment cannot be made in writing or by telephone.

A separate adjusted RS must be sent electronically for each reporting period to be adjusted. Correctly reported data are not to be repeated in the adjusted RS.

What needs to be adjusted and how?

1. Incomplete RS

If a transaction has not been reported in the original RS, this must be entered in the adjusted RS.

Example:

Business M carries out an intra-Community supply of goods in the amount of EUR 5,000 to the Spanish business P with VAT ID No. ES111111112 in the third calendar month.

When submitting the RS for the third calendar month he overlooks these sales.

Business M must now submit an adjusted RS for the third calendar month. Here he declares only the missing intra-Community supply of goods to P:

2. Incorrect reporting period

If a transaction has been declared in an incorrect reporting period, the RS for this reporting period must be adjusted.

Example:

Business M carries out an intra-Community supply of goods in the amount of EUR 13,000 to the Spanish business P with VAT ID No. ES111111112 in the third calendar month.

He erroneously enters this supply in the RS for the second calendar month.

Business M must submit an adjusted RS for the second calendar month. Here he enters the reported sales with “0” as the sum of the bases of charge. In addition, an RS must be submitted for the third calendar month.

Adjusted RS for the second calendar month:

RS for the third calendar month:

3. Incorrect foreign VAT ID No.

If a transaction has been reported with an incorrect foreign VAT ID No., the RS must be adjusted. To do so the original reporting item must be canceled first and then entered correctly.

Example:

Business M carries out an intra-Community supply of goods in the amount of EUR 21,000 to the Spanish business P with VAT ID No. ES111111112 in the third calendar month. He enters VAT ID No. ES111111113 in the RS for the third calendar month.

Business M must submit an adjusted RS for the third calendar month. Here he enters

1. the reported transaction with the incorrect VAT ID No. ES111111113 with “0” as the sum of the bases of charge for the cancellation

   AND

2. the transaction performed with the correct VAT ID No. ES111111112 with the correct sum of the bases of charge.

4. Incorrect sum of bases of charge

A reported transaction with an incorrect sum of the bases of charge must be adjusted. To this end an adjusted RS with the correct information must be submitted.

Example:

Business M carries out an intra-Community supply of goods in the amount of EUR 20,000 to the Spanish business P with VAT ID No. ES111111112 in the third calendar month. He enters EUR 30,000 in the RS for the third calendar month by mistake.

M must submit an adjusted RS for the third calendar month. Here he enters a reporting item with the correct sum of the bases of charge (EUR 20,000).

5. Incorrect type of sales

If the type of sales was not declared correctly in a reporting item, the RS must be adjusted. To do so the original reporting item must be canceled first and then be entered correctly.

Example:

Business M carries out an intra-Community supply of goods in the amount of EUR 20,000 to the Spanish business P with VAT ID No. ES111111112 in the third calendar month. In the RS for the third calendar month, he erroneously selects “other service” in the third column.

M must submit an adjusted RS for the third calendar month. Here he enters

1. the reported transaction with “0” stated as the sum of the bases of charge and selects “other service” in the third column for the cancellation

   AND

2. the transaction performed with the correct sum of the bases of charge with “intra-Community supply of goods” selected in the third column.

Further information can be found in the following leaflet (available in German language only):

Discounts, cancellations

Subsequent changes to the taxable base, for example due to rebates/discounts granted or derecognition on the basis of uncollectibility, do not constitute an adjustment of the RS.

The changed transaction must be declared in the month in which the change occurred.

Example:

Business M carries out an intra-Community supply of goods in the amount of EUR 100,000 to the Spanish business P with VAT ID No. ES111111112 in the third calendar month and declares this correctly for the third calendar month.

In the fourth calendar month, he also carries out an intra-Community supply of goods in the amount of EUR 80,000 to P and grants him a discount of EUR 5,000 for the first supply.

In the RS for the fourth calendar month, M declares a net intra-Community supply of goods to P in the amount of (EUR 80,000 - EUR 5,000 =) EUR 75,000.