11 Critical VAT Compliance Mistakes to Avoid

⚠️ Key VAT Pitfalls to Avoid

Late registration and threshold errors: Many fast-growing businesses miss VAT registration deadlines after crossing turnover thresholds, triggering backdated liabilities, penalties, and cash flow issues.
Incorrect VAT rates and invoice data: Misapplying VAT rates—especially for digital goods or cross-border services—and errors in Box 6 or missing C79 certificates can distort returns and invite audits.
Operational and reputational risks: VAT mistakes can freeze marketplace listings, delay fulfillment, and damage merchant trust. Proactive monitoring and automation are essential to stay compliant and scalable.