VALUE-ADDED TAX (VAT) AUDIT: SUMMARY OF CONSIDERATIONS AND ACTIVITIES
Value-added tax (VAT) is an indirect tax on goods and services. The rate of VAT applicable on standard rated supplies is as per VAT Act/ Regulations of relevant tax jurisdictions. VAT represents about 30% of all taxes collected by African revenue administrations (ATO 2020). However, there is empirical evidence to show that through proper planning and performance of VAT audit, more revenue in terms of VAT might be collected. The tax law usually provides wide powers to tax officers to perform VAT audit and imposes strong obligations on the taxable persons in terms of keeping of records, operating the VAT system, their liabilities to VAT and remitting VAT collected.