Incorrect processing of incoming VAT invoices is a debit to many municipalities’ credit processing

• Invoices and settlements in the municipal practice often result in incorrect processing of VAT.
• Examples include invoices from taxi companies for WMO transport services, invoices from waste processing companies for recycling sales, and settlements from watersports associations for collected mooring fees.
• These invoices and settlements require a split between cost and revenue, but if not recognized in the automated financial administration, errors can occur.
• This can result in negative costs and incorrect VAT reporting.
• Significant amounts may be incorrectly deducted from compensable or offsettable VAT.
• It is recommended to address this issue internally and establish clear protocols or agreements with suppliers for separate invoices for cost and revenue.
• Prevention is better than cure.

Source: efkbelastingadviseurs.nl

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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