VAT Returns

VAT returns are periodic reports that businesses submit to the tax authorities to detail the value-added tax (VAT) they have collected from customers and the VAT they have paid on their purchases. This process allows the government to ensure that businesses are correctly collecting and remitting VAT. The return shows both the sales and purchase VAT amounts, and the difference determines whether the business owes tax or is eligible for a refund. Typically, VAT returns are submitted quarterly or annually, depending on the country's regulations and the business's turnover.