Overview
VAT Internal audit is an independent management function, which involves a continuous and critical appraisal of the functioning of company with a view to suggest improvements thereto and add value to and strengthen the overall governance mechanism of company with respect to statutory VAT compliance. VAT Internal audit, therefore, provides assurance that there is transparency in reporting to and other compliance with the Federal Tax Authority.
The internal audit activity may be performed by company’s own employees or by an expert external agency like us.
Objective of Internal Audit
The following are the Key objectives:
- Establishing that sufficient, complete and proper record of the activities of the business is maintained by your company to enable the VAT liability to be correctly determined.
- That the assets and liabilities recorded actually exist.
- That all the transactions of sales and purchase are recorded.
- That the valuation is being correctly applied.
- Ensuring that the company understands clearly the operation of the tax laws and the requirements of the system as it affect their business.
- Assessing the degree to which revenue risks are present and, if there are any, what measures need to be taken to counter them.
- Ensuring that any further tax or refund due is timely identified and accounted for.
- Being alert for any possibility of fraud, determining the appropriate action required.
- Drawing the company's attention to any unsatisfactory features discovered and noting them in the visit report for attention next time and to ensure that they have been corrected.
- Ensuring that any unsatisfactory features discovered on an earlier visit have been corrected.
- Ensuring timely and adequate VAT compliance.
Types of VAT Returns
The following are the VAT Returns:
- VAT Tax Return - 201
- VAT Tax Return - 311