Every business must comply with tax declaration requirements. Yet, many still make mistakes due to lack of knowledge or frequent policy changes. Below are the 5 most common errors in tax declaration and solutions to avoid them.
1. Late Filing and Payment
- Impact: late submission of tax declaration leads to penalties and interest charges.
- Solution: set up reminders and assign a dedicated accountant.
2. Errors in Invoice Data
- Mistakes include wrong amounts, duplicated invoices, or incorrect tax codes.
- Impact: delayed processing or administrative fines.
- Solution: cross-check invoices with accounting records before submitting.
3. Not Declaring When No Revenue Occurs
- Some businesses assume no revenue = no need for tax declaration.
- Impact: penalties for missing returns.
- Solution: always file a “no activity” tax return on time.
4. Wrong Tax Calculation Method
- VAT tax declaration can follow the deduction or direct method. Choosing the wrong one leads to risks.
- Solution: understand criteria or seek tax consultancy before registering.
5. Lack of Document Storage
- Missing invoices or contracts can cause problems in audits.
- Impact: loss of tax deduction rights or back taxes.
- Solution: keep both digital and hard copies for at least 10 years.
Conclusion
Mistakes in tax declaration are common but avoidable. By respecting deadlines, verifying data, and maintaining proper records, businesses can ensure smooth and compliant operation.
