It is human nature to make mistakes, and while minor mistakes can be overlooked, repeated errors can be problematic, especially when filing a VAT return. It is critical that the return being produced adheres to the VAT laws and regulations. There are times when a person can make serious blunders while filing a VAT return due to a lack of knowledge of these laws and regulations. Yet, this is not a valid reason. The assessment of these blunders will determine how you might resolve these errors.
VAT Error Defined
According to the Federal Tax Authority, or FTA, a taxpayer must make a voluntary disclosure of an error or omission in a prior tax return application. It must be made within twenty weekdays of finding the error.
If you have made errors on your VAT returns, it is important to address them as soon as possible to avoid any potential penalties or fines. Here are the steps you can take to correct errors in VAT returns:
- Identify the errors: Review your VAT returns to identify the errors you have made. Common errors include incorrect calculations, incorrect figures, and incorrect VAT codes.
- Determine the type of error: Determine the type of error you have made. If the error is a careless mistake, you can correct it on your next VAT return.
- Correct the error: If the error is a careless mistake, you can correct it on your next VAT return. Make sure to include the correct figures and submit the corrected return as soon as possible. If the error is more serious, you may need to make an adjustment to a previous return.
- Explain the error: When you correct the error, explain why it occurred and how you have corrected it.
- Keep records: Keep detailed records of the errors you have made and how you have corrected them. This will help you avoid making the same errors in the future and may help you if you are audited by Accruon Consultants.
Remember, it is important to address errors in VAT returns as soon as possible. If you are unsure about how to correct an error or need further assistance, you should contact Accruon for guidance.