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


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:


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