Complying with the requirements of the VAT law has these advantages:

(1)it ensures that the client pays the correct amount of VAT, i.e. that he does not pay too much;

(2)it brings peace of mind; and

(3)if the client wishes to sell the business, a potential purchaser generally needs to be satisfied that the vendor complied with the relevant VAT laws.

VAT compliance is important because:

(1)VAT compliance is relevant almost continuously, rather than being a mere annual task:

(a)it is relevant every time a business issues an invoice or receives a payment, or purchases goods or services; and

(b)VAT returns and payments or claims are generally made quarterly, and sometimes monthly;

Want to read more?

This content requires a Croner-i Tax and Accounting subscription.

No subscription?

Contact us to discuss your requirements.