Maintaining VAT Data Best Practices

The following list provides some suggestions on good practices to improve the quality of VAT data and reduce the risk of potential errors.

1. Ensure that a VAT 126 description is provided for all suppliers (in IRIS Financials, this field is mandatory by default).

2. Deal with discounts correctly.

3. Ensure applicable VAT rates/codes are selected when invoicing. A good idea is to provide applicable staff with a catalogue of items identifying the VAT code/rate to be used.

4. Open and close VAT periods at the correct times.

5. Restrict access to VAT periods using security.

6. Manage the REGISTER period effectively and ensuring that invoices are authorised in a timely fashion.

7. Ensure that all petty cash receipts have a valid VAT number.

8. Do not change the status of a Closed VAT period to Automatic or Manual if the VAT return has already been submitted. This allows documents to be posted to the VAT period and may affect the VAT return that has already been submitted.