VAT affects pricing, invoicing, cash flow and record keeping. A business approaching the VAT registration threshold should consider its registration position early rather than treating VAT as an issue only when a return becomes due.
Before registration
Review the nature of supplies made, turnover, customer profile, invoicing systems and the records required to support input tax deductions.
After registration
VAT should be built into the accounting process. Tax invoices, output tax, input tax and supporting documents should be captured consistently and reviewed before VAT returns are submitted.
VAT rules depend on the facts of each transaction. Obtain advice where the treatment is uncertain.