Moore Stephens Outlines VAT Inspection Preparation Guidelines
Accounting advisory firm Moore Stephens has published a set of guidelines for clients facing value-added tax inspections.
VAT inspections - be prepared!
29 April 2013
With VAT inspections on the increase, here are our Top 10 tips to help yours go smoothly.
1. Do your prep. Make sure your business records are ready and easy to review. Consider speaking to the inspector beforehand to agree exactly what needs to be available.
2. Review your records for any potential issues. You could ask Moore Stephens to conduct a VAT healthcheck.
3. Ensure the right people will be available on inspection day to explain the business and answer queries. This could involve, for example, the sales director as well as a finance representative.
4. Make sure there is a suitable space with a desk available for the inspector's use.
5. On inspection day, try to provide information that is clear and accurate, otherwise you might set the inspector off down an unnecessary line of enquiry. If unsure, ask for time to check details and give your answer later.
6. If you discovered any VAT errors in your preparation, tell the inspector early in the visit. Your willing disclosure could have a bearing on any subsequent penalties.
7. Throughout the inspection, keep notes of topics discussed and information provided. This can be useful should you be inspected again in a few years’ time.
At the end of the visit:
8. Ask the inspector to explain what he/she has reviewed and what the outcome was.
9. Agree action points – who will do what or provide what specific information. If there are outstanding issues, ask the inspector to confirm these in writing and what is needed from you.
10. If the inspector suggests a different VAT treatment or issues an assessment for additional VAT, penalties or interest, seek professional advice. There could be another valid point of view.
