In the complex realm of indirect taxation, undetected errors within your VAT and excise duty processes are not dormant liabilities; they actively accumulate potential financial exposure. A seemingly minor, recurring mistake in calculating VAT, incorrectly applying an exemption, managing the reverse charge mechanism, or handling excise reporting can silently escalate into a major risk, potentially culminating in significant penalties and interest charges during a future Revenue Service audit. Legal Sandbox offers a proactive Indirect Tax Health Check, a specialized diagnostic review meticulously designed to systematically analyze your end-to-end VAT and excise duty processes. Our objective is to identify hidden risks before they materialize into costly problems, uncover opportunities for enhanced efficiency, and pinpoint potential tax savings.
This preventative service is essential for any established business operating in Georgia that aims to achieve and maintain a best-in-class standard of financial governance and tax compliance. Whether you seek assurance that your current VAT compliance framework is robust, wish to optimize your indirect tax management procedures for greater efficiency, or simply desire peace of mind knowing your processes are sound and legally defensible, our VAT Health Check provides the necessary clarity, actionable insights, and independent assurance required. It is a vital tool for proactive risk management in today's demanding regulatory environment.
Our Health Check constitutes a structured, forensic examination covering your entire indirect tax lifecycle. The process begins with a detailed Diagnostic Review and Risk Identification. We conduct a deep-dive analysis of your accounting systems, internal controls, and a representative sample of your transactions (sales, purchases, imports, exports). Our methodology is designed to rigorously pressure-test your existing procedures against the requirements of the Georgian Tax Code and relevant administrative practices. We scrutinize how your business handles critical areas like VAT registration triggers, accurate classification of supplies (taxable, exempt, zero-rated), issuance of compliant tax invoices, application of complex rules such as VAT reverse charge, and proper calculation and reporting of excise duties. The outcome is a clear, comprehensive, and confidential report pinpointing specific areas of non-compliance risk, quantifying potential financial exposures, and highlighting procedural weaknesses.
Identifying potential problems is only the first step; providing solutions is paramount. Our Health Check report serves as a strategic roadmap for tangible improvement. We deliver clear, actionable advice on implementing Best Practices for Indirect Tax Management. This includes concrete recommendations for strengthening internal controls to prevent future errors, improving record-keeping procedures for audit readiness, and optimizing workflows to reduce administrative burdens and enhance accuracy. Crucially, our review also identifies potential opportunities where your business might be overpaying VAT or excise duties due to missed reliefs or incorrect interpretations, allowing you to legitimately improve cash flow or pursue tax recoveries.
Finally, a diagnosis gains true value when it leads to effective remediation. Legal Sandbox does not simply deliver a report and disengage. Our team offers hands-on Implementation Support and Remediation Assistance. Whether our findings necessitate retraining your finance team on specific VAT rules, reconfiguring settings in your accounting software, developing new internal control procedures, or proactively liaising with the Revenue Service to voluntarily disclose and correct past errors (potentially mitigating penalties), we partner closely with you. We work collaboratively to remediate any identified weaknesses, address compliance gaps, and elevate your indirect tax processes to a benchmark standard of excellence, transforming your indirect tax function into a well-managed and efficient operation.
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