If the seller delays payment when paying taxes within the specified time, there will be a late payment fee. Late payment fee is a tax penalty caused by Germany's delay in paying taxes to merchants. The calculation method is to multiply the tax payable by the penalty rate, from the second day after the due date of the tax payable to the last remittance date, and the number of months involved.

2. fines for late filing of tax returns

For individuals or enterprises, if they are obliged to submit tax returns, but delay in submitting them (there are other policies if they are delayed due to uncontrollable reasons), this may lead to fines for delaying the submission of tax returns. Generally speaking, every staff member of the tax bureau has the right to decide whether individuals or enterprises that delay in filing tax returns should be allowed to pay fines for late filing.

Step 3 calculate interest

The Inland Revenue Department will calculate the interest on unpaid taxes within a certain period of time. If an individual or enterprise receives a tax notice after the end of the reporting year 15 months, the tax bureau will calculate the interest of paying tax at 0.5% every month. Similarly, if it is a tax refund, the tax bureau will also pay the corresponding interest to the taxpayer or enterprise.