Invoice quality
Check that sales and purchase documents contain the information required for the transaction and are retained in an organised manner.
Transaction classification
Review whether supplies have been classified consistently. Standard-rated, zero-rated, exempt and out-of-scope treatments should not be selected without supporting reasoning.
Supporting evidence
Some VAT positions depend on evidence. Build a process that captures documents when the transaction occurs rather than trying to reconstruct the file later.
Ledger-to-return reconciliation
Reconcile VAT control accounts, sales records, purchase records and submitted returns. Investigate old or unusual balances.
Management review
A second-level review should focus on significant transactions, exceptions and changes from prior periods.
Professional note: VAT outcomes depend on the facts and current rules applicable to each transaction.