Permanent Extension and Special VAT Prepayment: 2026 Practice Tips for Hospitality Businesses

• Entrepreneurs can apply for a permanent extension to submit VAT advance returns one month later than legally required.
• Using this extension requires a special advance VAT payment, amounting to one eleventh of the previous year’s advance payments.
• The special advance payment is generally credited in the December VAT prepayment.
• The article provides practical advice, especially for gastronomy businesses, on reducing the special advance payment during tax rate changes and summarizes the accounting and refund implications.

Source: datenbank.nwb.de

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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