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VAT return for self-employed: how it works step by step
Written by Ilias3 min read
Almost every entrepreneur deals with VAT. For many self-employed people the moment of the VAT return is a small stress point, but that's not necessary. If you keep your records in order, it's a matter of a few steps. This article explains how the VAT return works.
What is the VAT return?
VAT is the tax you charge on your turnover. The standard rate is 21%, for some goods and services 9% or an exemption applies. The VAT you charge customers, you remit to the tax authorities. The VAT you pay yourself on costs and investments, you may reclaim. The difference you pay or get back.
How often must you file a VAT return?
Most self-employed people file quarterly. You then receive notice from the tax authorities four times a year. Some entrepreneurs file monthly or annually; that depends on your situation. Keep a close eye on the deadlines, because filing or paying late can result in a penalty.
The steps of the return
First you gather your sales invoices and calculate how much VAT you received. Then you gather your purchase invoices and receipts and determine how much VAT you may reclaim. The difference between the two is what you remit or get back. You enter this amount on the tax authorities' portal and submit the return before the deadline.
How do you avoid mistakes?
Most mistakes arise from messy bookkeeping. Keep your sales and purchase invoices tidy throughout the quarter, instead of gathering everything at the last moment. Use bookkeeping software that calculates the VAT automatically. And set aside the received VAT separately, so you're not caught out when paying.
This article provides general information based on the rules known for 2026 and does not replace personal tax advice. For your specific situation, we're happy to take a look with you.
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