Five common VAT return mistakes

Most of the penalties we see with new clients come from repeated mistakes that can be avoided.

1. 1Deducting input VAT without a valid tax invoice. Purchase VAT can only be deducted with an invoice that meets the requirements and shows the supplier's VAT number.
2. 2Confusing zero-rated and exempt supplies. Each is treated differently in the return and in the right to deduct input VAT.
3. 3Ignoring credit and debit notes. Returns and later discounts must appear in the correct period.
4. 4Not reconciling the return with the books. Any difference between the return and the accounting records raises questions during an inspection.
5. 5Filing or paying late. Even if you owe no tax, the return must be filed on time.