At first sight, accounting for VAT invoiced by your suppliers seems simple... However, deductible VAT is sometimes wrongly recorded in the accounts and booked as an expense. At a European level, several billion euros of deductible VAT are thus lost by companies annually.
The risk factors are as follows:
- Type of purchase requiring complex accounting records (management of advance payments, accrual reversal, multiple VAT rates, ...).
- Wrong configuration of automatic VAT calculation on the introduction of a new accounting system (SAP, Oracle, ...).
- Modification/complexity of rules governing VAT deduction (Travel and Leisure, ...).
- Incomplete / confused invoices making it difficult to identify deductible VAT.
- VAT deduction considered as time consuming and deliberately not recorded by accounting staff (expense accounts, seminars, ...).
To recover these hidden sums, ABBD proposes an in-depth audit of its clients' accounts payable in order to identify all deductible VAT that has been omitted and in this way improve cash flow and results.
This is a matter of identifying VAT that is fully deductible and not of suggesting risky interpretations of tax legislation.
Our audits are based on dual competence:
- Our expertise in processing large amounts of heterogeneous data leading to in-depth and exhaustive analysis, giving us the capacity to detect unsuspected errors (see our page on Computer tools).
- Our knowledge, with over 10 years' experience, of tax regulations as well as purchases and suppliers at risk (see our page on Our Teams)