When you voluntarily disclose a VAT (Value Added Tax) error or omission to the tax authority, you will typically need to provide specific information to rectify the situation and ensure compliance. The contents of a VAT voluntary disclosure can vary depending on the country and tax regulations, but here are the general contents you might need to include:
Voluntary Disclosure Letter: Write a formal letter addressed to the tax authority explaining your voluntary disclosure. Include your business details, such as legal name, address, VAT registration number, and contact information.
Description of Error or Omission: Clearly describe the nature and extent of the error or omission in your VAT records or returns. Explain how the error occurred and provide any relevant details regarding the transactions or circumstances involved.
Time Period and VAT Returns Affected: Specify the time period(s) during which the error or omission occurred and the VAT returns that are affected. Provide the relevant VAT return periods and any other supporting documentation that helps identify the specific returns requiring correction.
Calculation of Correct VAT Liability or Refund: Calculate the revised VAT liability or refund amount based on the corrected figures. Provide a breakdown of the revised values, explaining how you arrived at the corrected amounts.
Supporting Documentation: Attach any supporting documentation that substantiates your voluntary disclosure. This may include:
Invoices, receipts, credit notes, or any other relevant financial documents.
Contracts, agreements, or correspondence related to the transactions in question.
Bank statements, purchase records, or sales records that support the correction.
Any other relevant information that helps explain the error or omission.
Explanation of Corrective Actions: Outline the steps you have taken or will take to rectify the error or omission and prevent its recurrence in the future. This may include implementing new internal controls, conducting additional training, or seeking professional advice to ensure compliance.
Deadline for Response: Request a specific deadline for the tax authority to acknowledge and respond to your voluntary disclosure. This will help ensure that your case is processed in a timely manner.
Declaration and Signature: Sign and date the voluntary disclosure letter to confirm its authenticity and accuracy.