- As e-invoicing and e-reporting expand, businesses must reconcile ERP transaction data, VAT determination, e-invoice/e-reporting submissions, and VAT returns to ensure the end-to-end VAT position is correct.
- Successful e-invoice transmission does not prove the VAT treatment is correct; discrepancies can arise from incorrect VAT coding, rejected/corrected invoices, or ERP adjustments not flowing into reporting systems.
- Tax authorities are increasingly able to reconcile submitted transaction data against VAT returns, as seen in Hungary and Romania, and may use automated reconciliation tools to identify discrepancies.
- HMRC has said e-invoicing data alone would not be enough to produce a pre-populated VAT return, reflecting concerns about matching prefilled data with internal records for complex taxpayers.
- Businesses need a backward-traceable reconciliation layer linking return differences to source transaction and reporting data.
Source: vatcalc.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.
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