VAT audits usually take place when you have submitted a late or incorrect VAT return.
During the VAT audit you will be asked about your business activities and will be accessed based on how you keep a record of all your VAT. You will be monitored on how you manage all your day to day business records for purchases and sales, book-keeping etc.
However, in most cases, businesses are selected by a computerized selection based on the businesses turnover, past compliance history and its trade class.
You are given 7 days notice prior to a VAT audit and many business owners are not prepared for this. As an online seller it can be difficult to keep these records as you may not even know that you needed to store VAT records.
Typically the VAT officers will want all your VAT records which can be as far back as six years. The purpose is to make sure that you are paying or reclaiming the correct amount of VAT.
Accurate bookkeeping is what they are looking for and accurate figures. If mistake have been found then likely you will face a penalty.
As an online seller who has been notified about an audit taking place within 7 days, the thought of this can be very daunting and stressful!
The reason why is because, anything that is found incorrect or inaccurate can lead to huge fines and penalties.
But don’t worry; we are here to take care of it for you.
Be it surviving the HMRC VAT enquiries or VAT audit, get in touch with us and we will handle it for you.