Voluntary disclosures – a valuable tool for dealing with value-added tax (VAT) errors

Detecting and correcting errors in past returns is a vital part of every VAT system. The mechanisms for correcting past declarations vary widely between jurisdictions. In most, however, taxable persons who find and report errors voluntarily receive a reduction or waiver of the penalties that would otherwise apply. As VAT penalties can be substantial, the benefits to businesses of making voluntary disclosures can be significant.

Source EY

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