Penalties for late filing

When do you get a penalty for filing late

The Belastingdienst usually sends a reminder and then a formal demand with a strict deadline. If after the demand you still fail to file or file late, a failure-to-file penalty follows. If you deliberately failed to file or filed an incorrect return, a punitive penalty may follow that is higher. In addition, a payment default penalty can be imposed if you do not pay the assessment on time, even when your return was filed on time. If you can reasonably be considered free of blame, the penalty may be waived or annulled. In case of doubt, it is important to substantiate this properly to the Belastingdienst. You can also schedule a consultation.

How high are the penalties in broad terms

Income tax or corporate income tax return filed late

For late or missing income tax or corporate income tax returns, the Belastingdienst applies fixed standard amounts that increase in case of repeated non-compliance. For individuals, think of a few hundred euros for a first offence, with higher amounts for repeat offences. For corporate income tax, the amounts are generally higher than for individuals. The exact amounts and tiers sometimes change each year. Always check the most recent information on belastingdienst.nl or contact us if you’re unsure about your situation. If you can’t meet the deadline or have fallen behind, consider outsourcing your tax return.

Penalty for late VAT return and payroll taxes

For VAT there is, in practice, a short grace period of 7 calendar days after the filing deadline. If you file within that period, no penalty will generally be imposed. If the VAT return arrives later or not at all, a fixed failure-to-file penalty is usually imposed. The penalty for a late VAT return is set as a fixed amount by the Belastingdienst and is updated periodically. A similar system applies to payroll taxes, with fixed amounts and tougher sanctions for repeated non-compliance. Always check the current amounts with the Belastingdienst.

Paying your assessment late

In addition to a filing default, a payment default penalty may follow if you do not pay the assessment on time. This penalty is usually calculated as a percentage of the amount due with a minimum and maximum. If the assessment is later reduced, the penalty will in principle be adjusted proportionally. Therefore, always pay as quickly as possible and request a payment arrangement where needed to limit extra costs.

Penalty for intent or gross negligence

In cases of deliberately incorrect or incomplete returns, or when you intentionally do not file, the Belastingdienst can impose a punitive penalty. The amount depends on the seriousness of the reproach. Gross negligence generally leads to a lower penalty than intent, while repeated or serious fraud can result in a higher penalty. The penalty is calculated on the underpaid tax and can amount to a substantial percentage. Mitigating circumstances, such as transparency afterwards or cooperating quickly and fully, can be grounds to reduce the penalty. If you can convincingly explain that the mistake was reasonably not your fault and substantiate this with evidence, you increase the chance of reduction or cancellation of the penalty.

Objecting and your rights when you receive a penalty

If you receive a penalty, the Belastingdienst must impose it in writing with reasons. You have the right to access the file, to use your right to remain silent in punitive cases, and to file an objection within the statutory period. In your objection, explain why you disagree, for example because the deadline was unclear, there was force majeure or absence of all blame, or because the amount of the penalty is incorrect. Always add evidence, such as correspondence, system errors or medical statements. If the penalty is upheld, you can appeal to the court. Seek guidance, for example from a tax advisor in Eindhoven, to increase your chances of success.

How to avoid penalties for late filing

Work with clear deadlines and reminders, and submit your records in good order monthly so your return can be filed without stress. Want to know how we safeguard the process and deadlines? Read how it works. Submit VAT corrections in time via a supplementary return to limit defaults and interest. Request an extension immediately if timely filing isn’t feasible. Pay assessments on time or request a payment arrangement to avoid a payment default penalty. If you want to outsource this, Profinancials handles your income tax, corporate income tax and VAT smartly and digitally, so you don’t run into unnecessary penalties.

Frequently asked questions

How much is the penalty for filing late

For income tax and corporate income tax, fixed standard amounts apply that increase with repeated non-compliance. For VAT and payroll taxes, a fixed amount per late return is often applied. The exact amounts change periodically, so always consult the current information from the Belastingdienst or ask us to check this for your situation.

How long can you postpone your tax return

In many cases you can request an extension to file your return. You must arrange this in time, preferably before the end of the stated period or at the latest within the dunning period. If an extension is granted, you avoid a failure-to-file penalty as long as you meet the new deadline. If that’s not possible, contact us immediately to limit the damage.

What are the consequences of filing late

The direct consequences are a failure-to-file penalty and possibly tax interest. In cases of intent or gross negligence, a punitive penalty may follow that is significantly higher. In addition, you may receive a payment default penalty if you pay late. Repeated non-compliance often leads to harsher sanctions. Prompt action, substantiating circumstances, and corrections via a supplementary return help limit penalties.

Need help with your return

If you don’t want to risk late-filing penalties or want to contest a penalty, we’re ready to help. For individuals and expats we handle income tax from A to Z. For entrepreneurs we arrange bookkeeping, VAT returns and corporate income tax with transparent pricing and digital processes. Schedule a free introduction via our website, or read more about our services for income tax, corporate income tax and bookkeeping. Also check the tax return costs.

Corporate income tax for BV and NV

Bookkeeping and VAT returns for entrepreneurs