- VAT compliance can be complex and mistakes can happen, so it’s important to promptly rectify any errors to avoid penalties and maintain accurate financial records.
- Common errors include failure to register for VAT in storage countries, incorrect application of VAT rates, issuing invalid VAT invoices, inaccurately calculating VAT on sales invoices, mistakes in EC sales list reporting, mapping customer locations incorrectly, and failing to retain evidence of customer location for B2C sales.
- Rectifying past mistakes is essential to maintain a good relationship with tax authorities and avoid penalties, and seeking professional assistance can be helpful.
- Ignoring VAT compliance errors can have significant consequences, including penalties, reputation damage, audits, and investigations.
- It’s important to take prompt action to correct errors and prioritize future compliance to safeguard your business.
Source Hellotax
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