On 28 June 2018 the vast majority of VAT registrants will have to submit their first VAT Return to the Federal Tax Authority.
This will be the first VAT Return, and the main question is whether these companies or individuals have prepared sufficiently for this task?
The other important questions that any company or individual that has registered for VAT must ask are:
Have your Tax Invoices been processed correctly to calculate your Output VAT?
Have suppliers' Tax Invoices been received correctly in order to qualify them for a claim for Input VAT?
Have the export of services been correctly allocated and accounted for?
Have you applied the "reverse charge mechanism" correctly to imports?
Have you apportioned your Input VAT correctly where you make supplies of both standard rated and exempt goods or services?
Have financial arrangements been made in time to cater for the payment that is to be made, through the channels provided?
These are only a few of an abundance of checks and balances required before a VAT Return can be submitted to the Federal Tax Authority free from error.
Should you wish to avoid costly mistakes and administrative penalties for submitting incorrect or late VAT Returns on 29 June 2018, we at BSA are able to assist with the conduct of following services:
- A "health check" on your accounting system to ensure its efficiency to process VAT related transactions;
- A summary legal audit of your Tax Invoices, both Input and Output, and a verification of any zero-rated and exempt supplies;
- Analysis of VAT ledgers and recommendations for required entry adjustments; and
- Preparation of the VAT Return.
The above services are offered on a fixed fee basis dependent on the volume of work required.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.