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 Â 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