- Tax Compliance
VAT Compliance Checks
VAT Compliance Check
Undergoing a compliance check? With TBA Global, you can put any anxieties to rest. We can represent you to ensure minimum disruption to your business.
Being asked to undergo a compliance check can be a daunting task for any business, from the moment that the notice is sent out by the tax authority. TBA Global can provide representation, negotiating with the tax authority on your behalf to demonstrate that your business is fully compliant with regulatory requirements. We’ll help you to:
- Maintain your business and financial reputation.
- Uphold a positive relationship with tax authorities.
- Keep track of your ongoing obligations to ensure your business runs smoothly.
What is a VAT compliance check?
A compliance check is usually initiated when a tax authority decides to review your existing VAT registration. In most cases, a compliance check is not a routine requirement.
This can be for many reasons, such as if they want to see additional evidence to support your tax filings, or believe that something has been filed incorrectly. It may also be that they simply want to double-check that your business is compliant.
For example, if you file a tax return that requests a very large refund from the tax authority, it’s likely to trigger a compliance check – the tax authority will want to check if you can provide evidence to support the refund claim.
What do I do if I’ve received a notice?
If you’re VAT-registered and you’ve received a notice from a tax authority informing you that they are seeking additional information from you, it’s very likely that it is a compliance check notice.
You can appoint TBA Global as a third-party representative to act on your behalf – we’ll communicate with the tax authority on your behalf.
It’s important to note however that you’ll still need to provide us with any evidence requested by the tax authority – our representation service is designed to make it easier for your business to work with the tax authority, especially if they are communicating in a different language.
Still unsure where to start?
Check out our FAQ or get in touch with us for a free one-to-one consultation.
We’ll set your business on the right course.
Frequently Asked Questions
Compliance checks can happen for numerous reasons. In some cases, it may simply be a routine check that is performed by the tax authority on a selected number of businesses.
In other situations, it may be due to concerns raised by the tax authority that some previous filings may be inaccurate, or if a tax refund request has been made.
The tax authority in question will send a formal notice, usually by post.
The compliance check notice will indicate the specific information that the tax authority requires your business to submit. In some cases, you may be able to deal with the tax authority directly.
However, many compliance checks are often very complicated and you may wish to consider appointing TBA Global as your representative. This will help ensure that the compliance check is dealt with properly.
Checking periods can vary from country to country, and it is subject to record-keeping rules for each country. For example in the UK, all business record needs to keep at least 6 years. As a result, UK HMRC can carry out a compliance check up to 6 years ago. In the EU, some record-keeping rules can go to at least 10 years.
Tax authorities normally work out VAT figures from whatever data they can collect. If they come to a higher figure of VAT figure means you will have to pay more VAT. Also, surcharges and interest can be applied. In this case, if you fail to provide sufficient documents to prove a lower liability, it is disadvantageous for your business. As a result, it is essential to keep all business record as requested years.
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