How often do businesses typically submit VAT returns?

Businesses typically submit VAT returns on a quarterly basis, which aligns with the standard reporting period set by many tax authorities. This frequent submission allows businesses to manage their VAT liabilities and maintain accurate cash flow, as they are able to regularly report their sales and purchases and remit any tax owed more frequently than annual reporting would require.

Quarterly reporting strikes a balance between not being too cumbersome for businesses, which could be overwhelmed by more frequent monthly reporting, while still ensuring that tax authorities receive relevant information at regular intervals. Though some larger businesses or those that choose to, may opt for monthly submissions, quarterly remains the norm for many businesses. Annual submissions are generally reserved for smaller businesses under specific thresholds or for those who have elected to use this method due to their low turnover. Bimonthly is not a standard reporting period for VAT returns under most tax regimes.