Taxes are paid quarterly during the year with a final adjusting payment or
refund when the assessment is issued. The quarterly prepayments are based on
a taxpayer’s estimated results, often derived from the assessment notice last
Newly registered taxpayers must give profit estimates for the first two
years when registering, and other taxpayers are sometimes asked for their own
profit estimates for a current period. Often these requests are prompted by the
tax office’s noticing an increase in sales revenue from the periodic VAT returns.
VAT returns are monthly or quarterly, but these “periodic” returns are only
A VAT return must be filed for each tax year (but, in this case, for
the twelve-month period ending on December 31, regardless of the accounting
year-end) within the same deadlines applicable to the returns of income taxes.
Payments and refunds follow the amount shown on the periodic and annual
returns. Assessment notices are only issued if the tax office wishes to depart
from the return. Often this is the consequence of a tax audit.