VAT audit

A VAT audit is a thorough review by tax authorities of a business's VAT records and transactions. It ensures that the business has accurately calculated, collected, and paid the correct amount of VAT on sales and purchases. The audit typically involves examining invoices, receipts, and accounting records over a specific period. Its purpose is to verify compliance with VAT laws, prevent fraud, and ensure proper tax reporting. While it can be routine or triggered by suspicious activity, an audit aims to confirm that the business operates within legal tax requirements.