Vat Audit

Hello, I'm a sole trader and have gotten letter from revenue saying I've been selected for a Vat Audit. Are audits like this fairly routine? I'm new to business.

The only VAT audit/visit I ever had in over 20 years of various business was in the first year. Basically to see if you existed, had basic bookkeeping skills and such.

unless of course you have been naughty!!!

Rrevenue Audits are a normal part of the self-assessment system. Some 25,000 or so Revenue audits were carried out last year. Some audits are tax head specific, such as VAT or PAYE/PRSI audits. Others are comprehensive covering all tax yeads for the period(s) under review. You should read the notice carefully, consult with your accounting/tax advisors and prepare carefully to ensure that everything is in order and read for the Revenue auditor. If you are not in business long then there will not be that much to review.

They will want to see the supporting documentation for your vat submissions ie sales and purchase invoices

They can however ask you questions like do you own your house ,car etc
And they can ask you about non vat related items like a large expense in your tax return

Thanks all for that. I have all everything up to date and haven't done anything out of the ordinary claiming back wise but it is possible that its a check against some one else I'm dealing with? I've no taxes done yet cos its I'm not a year up yet.

Had a Vat Audit last year after I bought some commercial property with a Partner and reclaimed the Vat - all perfectly legit, however it did trigger the Audit. Revenue took the opportunity then to have a look at any associated business's which we each had and to make sure that everything was up to date. They will do a Factfind on you asking what you own, how you paid for it, what you drive and how you paid for that etc.
Nothing sinister really and your Accountant will help you prepare all your paperwork for the visit. It is also a good idea to have your Accountant present when the Audit is taking place.

PADDYBLOGG said:

but it is possible that its a check against some one else I'm dealing with? I've

Click to expand...

It's possible. Following both ends of a transaction would not be unusual.