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VATQ (VAT review questionnaire) v4.00.00.00


Why use VATQ Questionnaire? The questionnaire has been designed as a checklist for use in a VAT compliance and advisory review.


About
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Client information

Q2

Client Information and completion data

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General

Q3

Has all VAT on pre-registration expenditure been correctly claimed? (Also VAT on expenditure incurred pre-incorporation for a company)
Q4

If not registered is turnover such that registration should be effected either immediately or in the foreseeable future?
Q5

If already registered, is turnover such that the advantages or disadvantages of deregistration have been considered?
Q6

Has voluntary VAT registration been discussed/considered?
Q7

Is the business a member of a VAT group?
Q8

Are there any connected businesses or companies?
Q9

As far as is known, are details of the registration correct e.g. have all partnership changes been notified to HMRC, and are procedures in place to ensure HMRC is notified of future changes?
Q10

Is the basis of registration correct - correct SIC code etc?
Q11

Does the client have a valid VAT registration number?
Q12

Is there any reason to suspect that suspicious VAT registration numbers have been used by the client's suppliers?
Q70

Has the business registered for Making Tax Digital for filling VAT returns?
Q71

Record the digital links in use and also any non-digital links
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VAT Returns and Summaries

Q13

Are full copies of VAT returns and workings maintained in sufficient detail for future reference e.g. are full printouts of VAT reports printed from accounting packages?

Q14

Are all sources of information for the VAT return compiled correctly? List sources.

Q15

Are all branches etc included in the calculations?

Q16

Have any adjustments been made or are any adjustments necessary on future returns, following errors either this year, or in prior years?

Q17

Are payments to HMRC in respect of deductions being made on time?

Q18

Does the VAT creditor/debtor balance in the nominal ledger at any VAT end period date reconcile to the subsequent payment/receipt?

Q19

Are payments made on time - and if paid electronically is use made of the additional 7 day time limit for payment?

Q20

Has payment by direct debit been considered/put in place?

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Sales and Outputs

Q21

Has sales per VAT returns in Box 6 been reconciled to sales per the accounts?

Q22

Is VAT properly accounted for on non-routine sales e.g. scrap, staff sales, machine income, asset sales etc?
List exempt supplies, zero rated supplies....

Q24

Are credit notes being recorded correctly and do they represent genuine credits?

Q25

Are VAT scale charges being applied and are they the correct rates based on co2 emissions?

Q26

If a retail scheme to calculate VAT Output Tax is in operation which one is it?

Q27

Is the retail scheme the appropriate one to use based on the turnover ?

Q28

Are tax point dates being dealt with correctly e.g. where deposits in advance are being received?

Q29

Could this business benefit from using the VAT Flat Rate Scheme?

Q30

If used, is the VAT Flat Rate Scheme being applied correctly?

Q31

Is the client aware of how and when to claim VAT on their bad debts?

Q32

Are discounts offered for prompt payment and is the VAT being accounted for correctly?

Q33

Have any major extensions been carried out to properties using own labour?

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Purchases and Input Tax

Q34

Are all supporting invoices kept?

Q35

Is input tax correctly claimed only on business expenditure i.e. no claims on non-business/private items?

Q36

Is VAT claimed on business entertaining?

Q37

Has VAT Been reclaimed correctly on any motor vehicles purchased?

Q38

Has the VAT on leasing/hire of vehicles been restricted (only 50% claimable)?

Q39

is input VAT apportioned where necessary for private use e.g. telephone etc?

Q40

Is VAT being claimed in the correct VAT period?

Q41

Is VAT being claimed on the fuel element of staff mileage expenses?

Q42

Are there any partial exemption implications so that input tax needs to be appoprtioned?

Q43

Is input tax adjusted where any invoices are more than six months overdue for payment? (Input tax can bve claimed at a later date when the invoices are acxtually paid).

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Exports

Q44

Does the business move goods to or from the EU and/or rest of the world?

Q45

Has the business applied for an Economic Operator Registration and Identification (EORI) number?

Q46

Is VAT correctly being applied to sales of goods abroad?

Q47

Does the business supply services to customers in the EU and/or the rest of the world?

Q48

Does the business obtain evidence that supplies are B2B (Business to Business)? (e.g. VAT number of customer etc)

Q49

Does the business sell services B2C (Business to consumer)?

Q72

Does the business supply digital services abroad?

Q73

Has the business registered in each member state or for VAT MOSS in an EU member state?

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Imports

Q50

Does the business import goods?

Q51

Does the business operate a VAT and duty deferment scheme?

Q52

Are import certificates (C79) held to substantiate the reclaim of VAT paid/deferred at importation?

Q53

For EC Purchases is VAT correctly declared in the VAT account and relevant boxes on the return?

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Schemes

Q54

Is the business eligible for / using cash accounting?

Q55

Is the business eligible for/using the Flat Rate Scheme?

Q56

If the Flat Rate Scheme is being used, what % is being applied - and is this the correct rate?

Q57

Is the business eligible for, and would it be advantageous to use the Annual Accounting Scheme?

Q58

Is the business using other special schemes e.g. tour operators ,margin scheme, second hand goods schemes?

Q59

If other schemes are in use, does it seem to be applying the rules correctly?

Q60

Are there any Partial Exemption implications?

Q61

For smaller businesses that are partially exempt, has the de minimis rule been applied so that all input tax can be reclaimed?

Q62

If partially exempt, does the Capital Goods scheme need to be considered?

Q63

Could the business which is supplying services on an ongoing basis e.g. builders etc. issue "applications for payment " rather than tax invoices to delay the tax point until the payment has been received fromn the customer?

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Property and construction

Q64

Does the client receive commerical property rental income?

Q65

Has the option to tax been considered/in place?

Q66

Where the client passes on service charges to their tenant, is VAT being charged on those invoices?

Q67

Construction - are procedures in place to properly determine the rate of VAT to be charged - 0%. 5%, 20%?

Q68

Have any building had a change of use or been renovated in the period under review?

Q69

Have any properties been developed for own occupation and any VAT claimed on the expenditure?

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Thank You


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Thank you for taking the time to answer this questionnaire