FDD24VAT is one of the most error-prone areas in business — even a small inaccuracy can result in a penalty or interest. We cover the mistakes we see most often and how to avoid them.
1. Late VAT registration
Companies sometimes fail to notice in time that they have exceeded the mandatory registration threshold. It is important to monitor turnover and register on time — a delay may require paying VAT retroactively.
2. Incorrect invoice details
VAT invoices may lack mandatory details or state them incorrectly. As a result, the buyer's right to deduct VAT may be challenged.
3. Errors in VAT deduction
A common mistake is deducting VAT on costs unrelated to taxable activity, or applying the proportional deduction incorrectly. This is one of the most frequently inspected areas.
4. Missed filing deadlines
Delays in filing VAT returns or paying the tax accrue interest. Sound deadline management helps avoid this.
How to protect yourself
- regularly monitor turnover and the registration threshold;
- check invoice details before issuing and accepting them;
- clearly separate activity related and unrelated to taxable transactions;
- meet filing and payment deadlines.
Reliable accounting and a periodic VAT review help catch errors before the tax authority does.