During a VAT audit, what aspect is primarily reviewed?

The primary focus during a VAT audit is the accuracy of the VAT reported in returns. This is essential because the purpose of the audit is to ensure compliance with VAT legislation and verify that the amounts reported to the tax authorities accurately reflect the business’s taxable activities. Discrepancies in the VAT calculations can lead to issues such as underpayment or overpayment of taxes, which can have significant financial implications for a business.

An accurate assessment not only involves checking the correctness of the VAT amounts reported but also ensuring that the proper VAT rates have been applied and that the source documents supporting those returns, such as invoices and receipts, are valid. This thorough review helps to identify any errors, potential fraud, or areas where the business may need to improve its tax reporting practices.

While other aspects, like customer satisfaction ratings, overall sales volume, or profits, might provide valuable insights into the business's performance, they are not the primary focus of a VAT audit. Instead, these elements may be evaluated in separate financial or operational audits, but they do not directly pertain to the compliance aspect of VAT reporting.