VAT arrears are looming and you have no money set aside?

Table of contents

Unexpected VAT liability: small business threshold exceeded

Small businesses have less bureaucracy because they do not have to show VAT on their invoices and do not have to submit advance VAT returns. Invoices from small businesses only need to include a note that no VAT is charged in accordance with Section 6 (1) no. 27 UStG. Accordingly, you do not have to collect and pay tax to the tax office for services provided as a small business.

However, if this limit is exceeded, you will be liable for VAT and will have to pay the tax office back taxes.

Although you can claim back taxes from the customers in question by issuing a new invoice, this does not make a particularly good impression or could irritate your customers. In addition, this can take a lot of time, which means that the deadline for paying the tax office in arrears may be exceeded.

Additional VAT payment after tax audit: The declared sales exceed the pre-declared sales!

In addition to the case of small business owners, who may find themselves in a difficult tax situation if their income is better than expected, it can also become problematic if a company's pre-declared turnover is exceeded. Although it is also welcome in this case that your own company is developing positively, you should always set aside reserves for tax payments and adjust the advance VAT return. The advance VAT payments (also known as input tax) are determined according to the advance VAT return - if this is not up to date or correct, the tax office can demand additional tax payments.

Our tip: deposit your tax receipts directly in another account so that you don't get into trouble with the tax office. Many business accounts include this service of a second "virtual tax account". You then have the corresponding amount of money ready for the tax office that is required on the basis of the annual return and won't be surprised by an additional payment.

Financing unexpected back VAT payments without reserves

How to settle your debts with the tax office!

If you have received a request from the tax office to pay VAT arrears but do not have the necessary reserves, Pfando, the market leader for short-term liquidity, is the right partner for you! Usually, the tax authorities allow a period of 4 weeks to settle the tax debt - quick liquidity is therefore worth its weight in gold!

In such a situation, a loan is a possible solution, but there are some disadvantages to a standard bank loan: Firstly, you have to prepare your documents for the loan application at your bank, which takes time in any case. The bureaucratic effort is further increased by the need for collateral and a credit check. It is also uncertain whether you will actually be granted the desired loan on time. What's more, loan expenses are not tax-deductible.

With Pfando, you have the perfect credit alternative that saves you all these hurdles! Benefit from our fast and unbureaucratic Cash & Drive principle, for which you don't need a credit report, collateral or proof of income. All you need are the documents for the vehicle you want to convert into cash (à to the checklist).

The highlight of our model is that you can quickly obtain cash for your vehicle, e.g. your company car, truck, van or even an agricultural vehicle, and continue to use it straight away! This keeps you mobile, flexible and allows you to pursue your private and business plans without restrictions. Take advantage of our uncomplicated offer to settle your tax debt in the current year and reduce your tax payment for the coming year!

Pfando is there for you at more than 60 locations throughout Europe - our trained employees are on hand to advise you and make you an individual offer with the maximum payout amount!

Make an appointment on site and bring your vehicle and documents with you - that way you can quickly get rid of your VAT debts and look to the future!

request now