Fix your VAT position before December, not during the audit
Fix your VAT position before December, not during the audit
VAT errors are rarely dramatic. They accumulate quietly through the year in the form of invoices posted to the wrong period, input VAT claimed without valid supporting documentation, and deposit account movements that nobody reconciled. By the time the auditor finds them, correcting the position is slower and more expensive than it needed to be.
November is the right month for a focused review. Reconcile the VAT deposit account to your ledger and explain every difference. Check that input VAT claimed is supported by valid electronic invoices in the correct period. Review transactions that changed character during the year, such as goods returned, contracts cancelled or advances that never converted. Confirm the treatment of any exempt or zero rated supply you have applied, and make sure the underlying condition still holds. Look at intra group charges, which are a recurring source of mismatches.
BDO Azerbaijan reviews VAT positions as a standalone exercise or as part of a wider tax health check, and can represent you in discussions with the tax authorities. Contact us for a pre year end VAT review while corrections are still simple.
November is the right month for a focused review. Reconcile the VAT deposit account to your ledger and explain every difference. Check that input VAT claimed is supported by valid electronic invoices in the correct period. Review transactions that changed character during the year, such as goods returned, contracts cancelled or advances that never converted. Confirm the treatment of any exempt or zero rated supply you have applied, and make sure the underlying condition still holds. Look at intra group charges, which are a recurring source of mismatches.
BDO Azerbaijan reviews VAT positions as a standalone exercise or as part of a wider tax health check, and can represent you in discussions with the tax authorities. Contact us for a pre year end VAT review while corrections are still simple.