Recognize value added tax risks

Do you know the risks of value added tax (VAT)? Although many entrepreneurs deal with the topic of VAT, risks are often not perceived or perceived late. When it comes to VAT, even small details can turn into a big problem and accordingly cause a big burden for your business. Read here how you can minimize these risks with VAT.

What needs to be taken into account when handling/recording VAT?

Companies must differentiate above all between domestic and foreign sales. This is because deliveries and services are taxed differently abroad than domestically. And it is often not so easy to correctly qualify the services provided for VAT purposes. For this purpose, detailed practical and industry instructions must be taken into account.

Furthermore, as a company you should take care to correctly book, declare and account for deductible input taxes. If your company does not exclusively provide taxable services, the input tax to be claimed must be reduced proportionately, whereby an appropriate calculation must be applied.

If a company procures services abroad, it must be clarified whether purchase tax is to be settled on the services, which can be claimed again as input tax within the scope of the business activity.

What happens in the event of errors or omissions?

In the event of errors or omissions in the area of VAT, there is the threat of severe fines; in addition, corporate bodies are personally liable for VAT liabilities. However, subsequent declarations and self-disclosures within the limitation period are possible. Therefore, every company should have its VAT situation checked. In a VAT check, you can have your VAT situation examined, eliminate any inconsistencies and be shown optimization potential.

How can RedLeafs support you?

We at RedLeafs support you in auditing your contracts and business cases, and are at your disposal for periodic VAT declarations. If a VAT control is imminent, we will accompany you on the way and through the control. If required, RedLeafs will also temporarily take over the responsibility for your VAT affairs or the fiscal representation for your company. We take an individual approach to your needs and tailor our services to the needs of your business.

The most important things at a glance:

  • Let RedLeafs do a VAT check and have your VAT risks under control.
  • If your company does not exclusively provide taxable services, the input tax to be claimed should be reduced proportionately, applying a proper calculation.
  • Services in the area of VAT should be qualified and, if necessary, optimized.