Many businesses file VAT returns as a matter of routine. But routine does not guarantee accuracy. A VAT Health Check challenges that assumption, by reviewing how VAT is being applied, reported, and recovered in practice. It is a targeted review designed to uncover technical risks, inefficiencies, and compliance gaps that may otherwise remain undetected.

VAT Health Check

It is a structured, independent review that evaluates your VAT processes, documentation, and reporting to identify risks, inefficiencies, or compliance gaps.
Whether you manage VAT internally, through a CSP, or via your finance team, this check delivers the detailed insights and support you need to take corrective measures early and prevent problems from escalating further.

Why should you consider a VAT Health Check?

As a forward-thinking business leader, ensuring the integrity and efficiency of your VAT processes is essential for safeguarding your company’s financial health and reputation. A VAT Health Check is a proactive advisory service designed to help you address the complexities of VAT compliance and optimise your tax position.

This service provides peace of mind and technical assurance in the following situations:

Inaccurate VAT returns or incomplete documentation can expose your business to costly penalties, audits, and reputational damage.
Failing to align your invoicing and record-keeping in line with the Malta VAT Act, increases the risk of compliance breaches that could disrupt your operations.
Overlooking the effectiveness of your input VAT recovery processes may result in significant financial losses from unclaimed or disallowed VAT.
Weaknesses in your VAT controls can leave your business vulnerable during audits, leading to unexpected liabilities and management scrutiny.
Ignoring potential inefficiencies in your VAT processes could mean missed opportunities for savings and leave your business at a competitive disadvantage.
Inaccurate VAT returns or incomplete documentation can expose your business to costly penalties, audits, and reputational damage.
Failing to align your invoicing and record-keeping in line with the Malta VAT Act, increases the risk of compliance breaches that could disrupt your operations.
Overlooking the effectiveness of your input VAT recovery processes may result in significant financial losses from unclaimed or disallowed VAT.
Weaknesses in your VAT controls can leave your business vulnerable during audits, leading to unexpected liabilities and management scrutiny.
Ignoring potential inefficiencies in your VAT processes could mean missed opportunities for savings and leave your business at a competitive disadvantage.

What does the VAT Health Check involve?

The VAT Health Check is designed to be flexible and can focus on areas most relevant to your business. It may include:
  • Reviewing one or more VAT returns for accuracy, structure and logic.
  • Reconciling return values with sales and purchase records.
  • Examining a sample of sales and purchase invoices for compliance with VAT rules.
  • Reviewing recap statements where applicable.
  • Analysing input VAT claims to assess eligibility and risk.
  • Identifying missed opportunities on eligible input VAT claims.
  • Checking consistency between information held with different authorities such as the MBR and MTCA.
  • Identifying potential risks relating to exemptions, reverse charge mechanisms, intra-communicty supplies, and fixed establishment provisions.
  • Highlighting gaps in processes or record-keeping that may require adjustment.

The process concludes with a detailed written report outlining key findings, observations, and suggested next steps.

Who needs a VAT Health Check?

Businesses experiencing rapid growth or operational changes are at increased risk of VAT compliance issues that can lead to costly investigations and disrupt expansion. Companies operating across borders or in complex sectors like gaming, fintech, crypto, and digital services face heightened regulatory scrutiny and unexpected VAT liabilities. Organisations unprepared for audits or regulatory enquiries risk compliance failures, penalties, and reputational harm. Any business that neglects to validate its internal VAT processes or proactively manage VAT risk leaves itself exposed to financial losses and regulatory action.

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A VAT Health Check provides more than a review. It:

Reinforces confidence in the integrity, accuracy, and compliance of your VAT position
Assesses whether your business is optimising its entitlement to input VAT recovery
Detects reporting errors or procedural oversights before they escalate into liabilities
Clarifies the extent of your business’s exposure to VAT risks across operations and jurisdictions
Strengthens internal VAT processes through practical, tailored recommendations
Provides your leadership team with clear, actionable insights to support sustainable growth and reinforce stakeholder confidence
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To learn more about the VAT Health Check, including the full scope, methodology, and common review areas, download our brochure.

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