Digital VAT Scan

ServicesTaxGlobal Indirect Tax - Value Added Tax and Customs

Digital VAT Scan

Preliminary VAT returns are usually due every month, and the declaration often involves repetitive business transactions. Does it make sense to worry about this every month? Of course not - once the VAT treatment is assumed to be correct, it is simply repeated without checking it. This is why VAT is such a tricky issue and so prone to tax risks that can accumulate unnoticed over years.

With our Digital VAT Scan, we detect any errors before the tax auditor does. We extract the company's VAT-relevant data and then analyse it with the help of IDEA® – the same software that the tax authorities use. You can therefore be highly certain that anything a tax auditor would detect or question is uncovered by us beforehand.

How the Digital VAT Scan works

1. Together, we define the scope of the examination and select the type of test to be performed

  • A basic check of the financial accounting data is performed
  • Various data sources are checked to gather more informative data (reconciliation of financial accounting data with logistics/sales/purchasing data)
  • The sampled data is defined and reviewed (e.g., invoices, transport documents, contracts, and VAT returns)

2. Data is extracted in one of these ways:

  • independently by your company
  • with Forvis Mazars’ assistance
  • completely by Forvis Mazars

3. The test(s) are performed, and the results evaluated

4. A report is prepared, outlining the findings and recommendations

5. The results are presented in your company (if required)

When is our Digital VAT Scan the right tool for you?

  • You do not have the time to continually analyse the company's reporting data.
  • Your employees lack the necessary VAT expertise, meaning that there’s a risk that new business transactions might be entered into the system incorrectly.
  • Employees underestimate the complexity of VAT law, especially in cross-border situations.
  • Master data has been handled rather casually so far, and not properly maintained.
  • A tax audit, special VAT audit, or special VAT inspection has been announced and you want to be well-prepared for it.

Benefits of our Digital VAT Scan

  • When our Digital VAT Scan has been completed, you will not only understand where you currently stand but also have a game plan that outlines your goals and how to achieve them: We give you a detailed analysis of the status quo and provide specific recommendations for implementing improvements.
  • This helps reduce the liability risks for your managing directors and avoid unpleasant encounters with the criminal justice system which can impose harsh penalties for tax violations.
  • You also greatly shorten any tax audits and free up your staff’s time for other work. You demonstrate to the tax office that you take VAT compliance seriously and have it under control, thereby strengthening the auditor's trust.
  • Mistakes do not always result in a company paying too little tax; often enough, the opposite is true. So, the Digital VAT Scan also offers opportunities to reduce a company's VAT burden.

Cost of the Digital VAT Scan

The Digital VAT Scan can vary by comprehensiveness and the number of spot checks performed. Whether you extract the data yourself or with our support naturally also affects the fee. We would be happy to discuss with you the best approach for your company and then provide you with an individual fee proposal.

Do you have any questions or need further information?

Please contact us

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