Myths about VAT

Myths usually occur from not knowing something. And it‘s especially the case when talking about VAT. team outlines that there are many people who don‘t know anything about VAT return and other VAT realted matters, and only a few knows the meaning behind this abbreviation. From these various myths occur, therefore they mislead many. And especially business people. Let‘s find out the most popular myths.


Error on VAT return means a penalty


As every other mistake in life, VAT mistake is also thought about and taken into consideration before taking any actions. Of course, there ar cases when people get penalties, but it‘s rare and not ocassional. The sums of money you made mistake of can be easily returned with the next VAT return payment, suggests specialists.


UK will no longer follow EU VAT


To a certain degree, this myth is true. However, if Vat is overpaid because UK fails to implement EU Vat legislations in a right manner, tax payers will be still entitled to claim VAT dating back to four years. No matter the chaos, Vat can‘t disappear.


Business entertainment expenses through VAT


Another believed myth, accoring to specialists is that it is possible to recover VAT return on the expenses of business entertainment. However, the tax can cover the entertainmetn of the employees, who are getting salary from you. Other people you entertain don‘t count and therefore VAT can‘t be claimed.


We hope that the misunderstandings have been cleared even a little. Because the VAT is such of an important matter, one must check all the facts before doing any actions. VAT is a serious matter which can cost lots of money, so it‘s neccessary to look at it seriously.

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