The VAT Readiness Checklist
The VAT Readiness Checklist
This week, we will look at the VAT readiness checklist which can assist businesses in determining their level of readiness for VAT implementation. The list is not at all exhaustive but provides some guidelines of some of the issues which businesses should be looking at.
VAT Readiness Checklist
| Check Points | Yes | No | Notes |
| Is the company within the threshold for VAT | |||
| Are you already registered for VAT | |||
| Do you know the procedures for registration | |||
| What is your VAT Registration Number | |||
| Who prepares the company’s accounts
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| Are the staff comfortable with general accounting concepts | |||
| Do you use an Accounting Software | |||
| Which Company Made it | |||
| Do you have the Manual for it | |||
| Can it account for VAT | |||
| Did you turn on the Sales Tax Feature | |||
| Did you setup VAT (Sales Tax) Codes | |||
| Did you setup VAT (Sales Tax) Items | |||
| Have you setup a VAT Output Account in the COA | |||
| Have you setup VAT Input Accounts | |||
| Approximately how many products do you sell (Qty) | |||
| Did you configure VAT for each item sold | |||
| Approximately how many credit customers do you have | |||
| Do most of your customers pay you late (after 30 days) | |||
| Do you do a lot of cash sales | |||
| Do you do hire purchase | |||
| Are you aware of the VAT rules regarding financial services | |||
| Do you issue a lot of credit notes | |||
| DO you issue a lot of debit notes | |||
| Did you configure VAT for Each Customer | |||
| Can your software produce a VAT Return | |||
| Do you know how to prepare the VAT Return | |||
| What method would you use to produce the VAT Return | |||
| Are you using a POS system now | |||
| Is it configured for VAT | |||
| Does it integrate with your accounting software | |||
| Would you like it to be integrated with the Financial Accounting Software | |||
| Are your computer generated invoices “VAT Ready” | |||
| If not, do you propose to make changes to its present format. | |||
| Do you use manual invoices | |||
| Are they “VAT Ready” | |||
| When do you intend to have them printed and ready | |||
| Do you know that you will need to have manual invoices as a backup to the computer generated invoices | |||
| Are your receipt books VAT Ready | |||
| Are your debit notes VAT Ready | |||
| Are your credit notes VAT Ready | |||
| Do you export products/services | |||
| Do you sell VAT exempt items | |||
| Do you sell zero rated items | |||
| Do you have a “good” filing system to store bills , receipts, etc. | |||
| Do you have a data backup system in place for storing electronic transactions | |||
| Do you import products | |||
| Do you buy on credit | |||
| Do you have a cash flow management system in place right now |
By Cuthbert John, PMP, Project & Business Management Consultant. Tel 7584603035; Email: cuthbertjohn@pbmcaribbean.com