During a VAT audit, tax authorities typically request a variety of documents to verify the accuracy and completeness of VAT filings. Here are the common types of documents that are usually requested during a VAT audit:
- VAT Returns:
Copies of the VAT returns filed during the audit period. - Sales and Purchase Invoices:
Detailed invoices related to all sales and purchases made by the business. These should include information such as the VAT charged, the VAT number of the supplier or customer, and a description of the goods or services. - Receipts and Proof of Payment:
Receipts and bank statements or other proof of payment to substantiate the transactions recorded in the business’s books. - Import and Export Documents:
Documentation related to imported and exported goods, including customs declarations and shipping documents, to verify any VAT exemptions or duties paid. - Accounting Records:
General ledger, journal entries, and other accounting records that show how transactions have been recorded and how they relate to VAT calculations. - Contracts and Agreements:
Copies of contracts and agreements with suppliers and customers that may affect VAT liabilities. - Previous Correspondence:
Any previous correspondence with the tax authorities, especially relating to prior audits, VAT assessments, or disputes. - Financial Statements:
Comprehensive financial statements, including profit and loss accounts and balance sheets, to provide context to the VAT returns and support the figures reported. - Electronic Records:
Access to electronic accounting systems or databases may be requested to verify the integrity and origin of the transactions recorded. - Special Exemption or Refund Claims:
Documents supporting any special VAT exemption or refund claims made by the business.
Being well-prepared with these documents can help streamline the VAT audit process and demonstrate compliance, reducing the likelihood of penalties or additional tax assessments. It’s advisable for businesses to maintain organized and easily accessible records to facilitate quick and efficient responses during an audit.