Preventing VAT filing errors during COVID-19 and making 2020 the year of reducing VAT-related risks, with an FTA-approved Tax Agent

As VAT is a self-assessment transactional tax, it is the taxpayer’s responsibility to ensure that the extensive obligations imposed by the legislation and regulations are fulfilled, and that VAT is correctly accounted for, collected, and paid over to the Federal Tax Authority. The onerous obligations placed on taxpayers in operating this high-risk transaction-based tax are made all the more difficult to navigate, given that we are operating in a constantly-evolving tax, operational and technologically-driven landscape, which brings in more risks for taxpayers. Awareness of the common pitfalls associated with operating VAT in a tightly-controlled environment is essential, as also ensuring that employees are appropriately trained. Employees should also be kept up to speed with the changes in practice and legislation, as this cannot be underestimated, and should assist with significantly reducing the risk of errors in the VAT compliance process.Given the complexities involved with the accurate operation of VAT, it is no surprise that taxpayers will invariably discover VAT errors at some point.

The minutest errors can lead to significant consequences, with timely action taken being key, as also engaging with Revenue to ensure full disclosure and cooperation when regularising matters with a view to mitigating sanctions (which, depending on the circumstances, may include interest, penalties and/or publication).With all of the above in mind, it is therefore highly recommended that businesses outsource their VAT Compliances to FTA-approved Registered Tax Agents, to ensure the accurate operation of VAT, and that all compliance obligations are fulfilled. The team of tax agents at MBG represents an extensive wealth of experience in VAT compliance reviews, VAT health checks, and the VAT Smart Review, where we help identify any potential risks and provide assistance to mitigate the same, whilst also identifying any opportunities to improve processes or recover additional VAT.