In my recent article ‘Focus on VAT’, I considered the common difficulties that businesses encounter in dealing with VAT. As VAT rules become increasingly complex the importance of managing VAT correctly, understanding the VAT implications of transactions and the associated compliance obligations is critical.
The aim of a VAT health check is to conduct a review of a business to ensure that VAT is being operated correctly and to identify where VAT risks or opportunities may lie. It seeks to understand how VAT risk and compliance is monitored and managed to allow us to pinpoint specific areas where VAT compliance may be weak.
- VAT is a tax on transactions rather than on profits/income and failure to operate VAT correctly can have very significant implications
- VAT legislation, including VAT compliance requirements regularly change
- Increased focus from Irish Revenue on VAT in an attempt to reduce VAT fraud
- By adopting a proactive approach to VAT issues any matters to be dealt with are more likely to be identified early which should lead to reduced interest and penalties
If you are interested in availing of a VAT health check or would like more details about services we can offer, please contact Ruth Linehan, Indirect Tax Director who will be delighted to assist.