VAT accounting

VAT accounting requires not only the submission of a declaration

In VAT accounting, it is important to consistently control purchase and sale documents, applicable rates, VAT deduction, registers and declaration data. Errors often appear not in the declaration itself, but earlier - due to an incorrect assessment of the account or a specific transaction.

When managing VAT accounting, we assess not only the number of documents, but also the nature of the company's activities, transactions in Lithuania and abroad, VAT payer status and other factors determining tax risk.

What is usually included in VAT accounting?

• VAT control of purchase and sales invoices.
• Verification of applicable VAT rates and document details.
• Valuation of purchase VAT deduction.
• Preparation of VAT registers and i.SAF data where applicable.
• Preparation of FR0600 and other VAT declarations relevant to the company.
• Accounting for credit documents and adjustments.
• Evaluation of non-standard and international transactions.

When does VAT accounting become more complicated?

Greater risks arise when the company works not only on the Lithuanian market. Purchases of goods or services from abroad, sales in other countries, EU transactions, reverse taxation or different VAT rates require a separate assessment.

In such cases, it is important to resolve the issue before the documents are registered and the declaration is submitted, and not only when the discrepancy has already been established.

VAT registers and declarations must match

In the VAT accounting process, we check whether the data in the registers correspond to the accounting and declared amounts. Discrepancies between accounts, registers and declarations can be a signal that a document is missing, the rate is incorrectly applied or the transaction is registered in the wrong period.

A practical monthly checklist can be found in the article VAT accounting: what to monitor every month?.

It is worth monitoring the status of the VAT payer in advance

For companies that are not yet VAT payers, it is important to periodically assess whether the obligation to register does not arise due to the scope of activity or specific transactions.

You can read more about it in the article VAT payer registration: when does it become relevant?.

How do we start VAT accounting?

1. We assess the company's VAT status and nature of activity.
2. We review the documents in use and their flow.
3. We check the status of registers and declarations.
4. We coordinate the periodic transfer of documents and the communication of non-standard transactions.

VAT accounting is often part of the overall monthly bookkeeping. If you need to assess existing discrepancies, an accounting review may also be relevant.

Related information on VAT accounting

We discuss daily VAT document and declaration checks in more detail in the article VAT accounting: what to monitor every month?.

If the company is not yet a VAT payer, read VAT payer registration: when does it become relevant?. For non-standard transactions, tax consultations might also be relevant.