The Audit Process: PERCET: (E) establish: minimum information requirements (MIR)
There are certain key aspects of information used in the Central Risk Analysis process which, if data integrity is not maintained, will seriously affect the quality of risk analysis and will have knock on effects to the management of risk.
The following information must be addressed:
- trade classification;
- effective date of registration;
- legal entity;
- realistic estimate of taxable turnover, which is not automatically extracted from return;
- the bona fide nature of the business, for example there is no fraud or deception;
- repayment Indicator and Repayment Inhibit Indicator are correctly set;
- any partial exemption indicator is correctly set;
- EC despatches and acquisitions indicator set;
- Single Market indicator; and
- computer indicator set.
VAT 12 forms and/or DTR should be completed/updated when required in respect of legal entity, trade classification and repayment indicator.
OPs should be completed in respect of taxable turnover and complexity and compliance points.