VAT review of German business activities
WW+KN assists clients to identify potential VAT risks and opportunities and obtain insight into potential business impacts and VAT compliance process requirements. To help ensure compliance and to keep the risk of penalties at a minimum WW+KN offers a VAT review service.
A VAT review considers all areas of a business or organization to determine the German VAT liability of supplies and the need for any restriction of recovery in respect of VAT incurred. This requires that WW+KN understands the activities carried out and will need several information.
At the end of the process a detailed report is produced highlighting areas of concern and potential opportunities for VAT savings. Although this review is not a full audit of the German VAT records of a business it provides an detailed overview of risk areas that can then be further examined as necessary.
In terms of minimizing penalties on any errors identified in the future by the German tax authorities, commissioning a VAT review is evidence that a business is taking ‘reasonable care’ in relation to VAT compliance, which in turn could lead to mitigation of penalties.