Imagine investing significant time, money, and resources into the VAT recovery process, only to have your claims rejected. Talk about frustrating! But VAT processes are anything but straightforward, especially as your business grows. Luckily, you don’t have to tackle VAT errors alone. Here’s a guide to avoiding common VAT mistakes and maximizing your potential savings.
Failure to Retain Payment Receipts
Your receipts and invoices are the key to successful VAT reclaims. To reclaim VAT on expenses, you need to provide documentary evidence of these expenses. Ensure all expenses are accurately tracked, and receipts are obtained and retained according to relevant VAT instructions.
Claiming VAT on Non-Business Use Expenses
Navigating the murky waters of VAT reclaims requires a keen eye for detail. It’s not just about tallying up expenses; it’s about understanding the intricacies of each jurisdiction’s VAT regulations. Be wary of claiming VAT on expenses that don’t qualify for recovery, as this can lead to rejected claims and potential penalties. Take the time to review each expense carefully and consult with VAT experts if needed.
Amendments to Legislation
The only constant in the world of VAT is change. Legislation is continuously evolving, and failure to stay abreast of these changes can spell trouble for your VAT recovery efforts. Make it a priority to stay informed about the latest updates and amendments to VAT regulations in your target markets. This proactive approach will help you avoid costly mistakes and ensure compliance with current laws.
Not Adding the Human Touch
While technology aids VAT recovery, human intervention is essential for complex cases. The right VAT solution balances automation with human expertise, ensuring smooth management of reissues, VAT discovery, and legal queries.
Filing for a Claim with Non-Compliant Invoices
Submitting VAT claims requires compliant invoices. Many companies overlook this, resulting in invoices being sent in the wrong format or lacking information. This delays the VAT recovery process significantly.
BSO FINTAX is here to streamline your VAT processes and maximize your savings potential. With our centralized solution, you can avoid common VAT mistakes and achieve smooth VAT recovery.
