- VAT compliance refers to ensuring that business processes meet obligations under VAT regulations, including registration, VAT charging, verification, and submission of VAT returns.
- VAT reporting is the process of preparing and submitting VAT reports to tax authorities, including information on VAT charged, paid, and resulting liability or refund.
- Compliance is a continuous process that can result in penalties and sanctions if not followed.
- VAT reporting is just one part of compliance and focusing solely on it can lead to overlooking other obligations.
- VAT compliance and VAT reporting are distinct but both important responsibilities for tax teams.
Source: vertexinc.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
