VAT Health Check

Changes to VAT regulations are coming increasingly rapid-fire nowadays: the quick fixes with their significant changes to EC sales lists, VAT ID, chain supplies and consignment stocks, the new regulations on proof of documentation for intra-Community supplies, the e-commerce Directive with the one-stop shops, and the voucher Directive. What was correct yesterday may be incorrect today. How well is your company prepared to handle all this? Find out with the VAT Health Check.

Possible scenarios for the VAT Health Check

Naturally, these can be adapted to your individual needs.

We work with you to define the key areas that the health check should focus on as per the business model and the specifics of your company.
A previously agreed sample of relevant business transactions is collected (if applicable also internal incidents involving the company and its staff).
Check of the samples along the complete process in the company: Creation of a suitable tax key, master data entry, VAT assessment, invoicing, preliminary VAT return.
A report is prepared, with findings and recommendations for optimisation.
The results are presented within the company (as needed).

When is our VAT Health Check the right tool for you?

You lack the resources to constantly check for – and implement – all the VAT law changes.
Not all the employees in VAT-relevant positions have the necessary comprehensive expertise or are current on all the latest changes.
Your company has grown considerably, new business cases have been added, and you are unsure whether the IT landscape and in-house expertise have kept pace.

How you benefit from our VAT Health Check

After our VAT Health Check, you know the weak points and can focus specifically on these with our support:
We give you a detailed analysis of the status quo and provide specific recommendations for implementing improvements.
For future audits, you avoid findings by the auditor. This shortens the audit and thus saves your company's staff resources. The risk of additional payments and interest due is significantly reduced.
This also helps reduce the liability risks for your managing directors and avoid unpleasant encounters with the criminal justice system which can impose harsh penalties for tax violations.
You recognise the company’s VAT possibilities: For example, you can secure the company’s input VAT deduction by reliably checking the incoming invoices, ensure the VAT exemption of sales through optimal documentation, or reduce the VAT declaration effort by restructuring the supply chains and thereby minimising costs.

What the VAT Health Check costs

The VAT Health Check can vary by comprehensiveness and the number of spot checks performed in accordance with your needs. The complexity of the business transactions also affects the amount of effort required. Some examples of a VAT Health Check:

Example 1:

A service company with clients in the EU
One to two types of business transactions
Audit of ten to twenty samples to check the VAT keys, master data entry, VAT assessment, invoicing, and the preliminary VAT return

Fee: Approximately € 3,000, including a report with findings and recommendations for optimisation and a presentation of the results within the company. The fee does not include the 5 % flat rate for expenses and, if applicable, individual expenses and VAT.

Example 2:

Production company with customers in several EU Member States
Ten different types of business transactions
Audit of fifty samples to check the VAT key, master data entry, VAT assessment, invoicing, and the preliminary VAT return

Fee: Approximately € 8,000, including a report with findings and recommendations for optimisation, and a presentation of the results within the company. The fee does not include the 5 % flat rate for expenses and, if applicable, individual expenses and VAT.