Top 20 VAT pitfalls

We have created a list of 20 of the most common VAT mistakes and then ranked them by their potential financial impact. 1 = biggest impact, 20 = some impact but not as great.

You may know of other pitfalls (or may, indeed, have fallen into them head first!). Or perhaps you disagree with our rankings. Let us know what you think by emailing us here.

Not considering that HM Revenue & Customs (HMRC) might be wrong
Trusting that all transactions with foreign customers are VAT-free
Being fearful of challenging HMRC' decisions
Leaving VAT planning until the 11th hour
Not opting to tax when you should, or opting to tax when you shouldn't
Not realising you are partially exempt
Relying on the partial exemption standard method to your disadvantage
Not pre-planning to ensure that you qualify for a relief
Forgetting the impact of the capital items regime
Not pro-actively managing your VAT affairs
Not reviewing your company car policy
Claiming import VAT from freight agent's invoice
Not retaining evidence of movement of goods
Trading abroad and not considering other countries' VAT/tax systems
Not achieving optimum advantage from VAT registration
Forgetting the impact of stamp duty
Forgetting to claim bad debt relief
Not claiming other reliefs
Being 'out of time' or missing deadlines
Not understanding the extent of your elections

We would be delighted to hear your contrasting views and experiences. Please email us here

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