- Auditors are asking about VAT due diligence during financial statement audits for 2023
- VAT due diligence involves actions taken by taxpayers to comply with VAT obligations
- The Polish Ministry of Finance has published guidelines for tax authorities on assessing due diligence behavior
- Tax authorities require due diligence for retaining the right to deduct VAT
- Due diligence is important to prevent VAT fraud and abuse
- Three options for exercising due diligence include following recommended activities, undertaking other compliance activities, and using the split payment mechanism
- Verification of transactions depends on size, value, and type of contractor
- Criteria for verifying new counterparties include formal and transactional factors.
Source: krgroup.eu
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.
