Problems recovering VAT?

Businesses still have problems recovering VAT. This is a saving to which they no longer have access and which, in some cases, can have greater consequences than the mere expense. And who is usually responsible for not recovering this tax?

Sometimes these problems are caused by the actions of third parties, such as unpaid invoices. However, in most cases, it is the organisation itself that is at fault, so the next question is: What is the problem?

What usually causes this type of error related to VAT recovery? The main reason is that the company forgets the obligation to keep documents and loses them, misses deadlines or gets the figures wrong, leading to requests from the tax authorities.

At present, there are a number of ways to avoid finding yourself in a situation where you can no longer be able to recovering VAT, Some of them bring important advantages for the business, which can help it to improve its accounting effectiveness and optimise its financial management.

Are you interested in finding out what the most common problems are and what the best solutions are?

4 drawbacks that make it difficult for you to reclaim VAT

Some of the most common reasons why businesses fail to recover VAT are as follows:

Forgetting to claim the VAT refund in the annual financial year.
Not having the supporting documents, invoices or receipts to provide the documentation required by the tax authorities.
Have any unpaid bills.
Neglecting deadlines and not realising that four years have already passed, the deadline for claiming the VAT refund.
These are issues that affect both large and small companies, but which, fortunately, have a solution, albeit different in each case. Thus, for example, when the four-year period is exceeded, the last case, the way to proceed would be as follows request a refund in writing The amount of tax has not been expressly disregarded as “VAT to be offset” in previous years.

After six months have elapsed, which is the period required to verify that the debtor is not willing to pay, a corrective invoice is issued to cancel the original invoice and a copy is sent to the tax authorities.

Thus, a judicial or notarial claim is made for the unpaid invoice and, finally, it would be sufficient to include the corrective invoice in the quarterly declaration form.

The first two cases mentioned above are the most common and the ones that cause the most companies in our country to lose their jobs. recovering VAT. These are, however, easily preventable cases.

Proper book-keeping would be sufficient, automated invoice management and be supported by a technology solution that helps to avoid human error, increase task efficiency and improve documentation management.

Want to forget the hassle of VAT recovery?