VAT Return
A VAT Return is a regular financial report that businesses must submit to tax authorities showing how much Value Added Tax (VAT) they've collected from customers and paid on purchases. It's like a summary of a business's tax situation that needs to be filed usually every quarter. Bookkeepers and accountants are often responsible for preparing these returns, making sure all the numbers are accurate and submitted on time. Think of it as a standardized form where businesses report their sales tax activities to the government. This is a crucial task in many accounting roles, especially in the UK, EU, and other countries that use VAT systems.
Examples in Resumes
Prepared and submitted quarterly VAT Returns for a portfolio of 50+ clients
Managed monthly VAT calculations and VAT Return submissions for multiple businesses
Reduced errors in VAT Returns by implementing new checking procedures
Typical job title: "Bookkeepers"
Also try searching for:
Where to Find Bookkeepers
Professional Bodies
Online Communities
Job Boards
Example Interview Questions
Senior Level Questions
Q: How would you handle a complex VAT situation with international transactions?
Expected Answer: A senior candidate should explain how they would identify different VAT rates for different countries, manage reverse charges, and ensure compliance with both local and international VAT rules. They should mention experience with various reporting systems and handling unusual situations.
Q: What systems would you put in place to ensure VAT Returns are always accurate and submitted on time?
Expected Answer: The answer should cover creating checking procedures, implementing deadlines and reminders, maintaining organized records, and having backup processes in place. They should also mention training staff and keeping up with tax regulation changes.
Mid Level Questions
Q: What do you do if you discover an error in a previously submitted VAT Return?
Expected Answer: They should explain the process of identifying the impact of the error, when to make corrections on the next return versus when to submit an amendment, and how to communicate with clients and tax authorities about the situation.
Q: How do you ensure you're using the correct VAT rates for different products or services?
Expected Answer: The candidate should discuss checking official guidance, maintaining rate tables, regularly reviewing categories, and having a system for handling special cases or exemptions.
Junior Level Questions
Q: What are the main sections of a VAT Return?
Expected Answer: They should be able to explain the basics: sales (outputs), purchases (inputs), and the difference that needs to be paid to or claimed from tax authorities. Basic understanding of different boxes on the return form.
Q: How often do most businesses need to submit VAT Returns?
Expected Answer: Should know that most businesses submit quarterly returns, but be aware that some may have different frequencies. Should understand submission deadlines and payment due dates.
Experience Level Indicators
Junior (0-2 years)
- Basic VAT calculations
- Simple VAT Return preparation
- Understanding of submission deadlines
- Basic bookkeeping skills
Mid (2-5 years)
- Managing multiple client VAT Returns
- Handling different VAT schemes
- Identifying and correcting errors
- Using accounting software for VAT
Senior (5+ years)
- Complex VAT planning
- International VAT handling
- Training and supervising staff
- Managing VAT audits
Red Flags to Watch For
- Unable to explain basic VAT rates
- No experience with accounting software
- Poor understanding of submission deadlines
- Lack of attention to detail
- No knowledge of recent VAT regulation changes
