VAT Accounting Procedures
As VAT is a transaction tax, it impacts on a number of processes within the business. Consequently, there is a need for VAT accounting procedures and controls to be in place, covering:
- Master data of customers and suppliers to the business, together with their place of establishment;
- Tax codes;
- Sales and purchase systems;
- General ledger; and,
- VAT reporting.
If there is a lack of ownership, control, or visibility covering any of these areas then this may have an impact upon the VAT returns being submitted to HM Revenue & Customs (HMRC), and also the financial statements.
At WB VAT, we have significant experience in undertaking VAT accounting procedure reviews to ensure that businesses meet their VAT compliance requirements as outlined in EU and UK VAT legislation and in meeting Senior Accounting Officer (SAO) criteria.
Our review of VAT accounting procedures provides added value by:
- Determining if there is an efficient way to manage the VAT function within the business; and,
- Ensuring processes and controls meet HMRC VAT audit and, if applicable, SAO requirements.