VAT Return – Difference between Errors and Adjustment : Revised Return or Prospective Disclosure

03 Jan, 2021

Typically, it is seen that a VAT return summarizes the sales and purchases that a taxable person has effected in a relevant period and the VAT relating to these transactions. All the information that is prescribed under the VAT laws should be made available / disclosed in the VAT return in prescribed format. The VAT return shall include a taxable person’s revenue from total sales (excluding VAT) and the output tax (VAT charged on the sales). The output tax is the amount that is eventually paid to the tax authorities as tax. Similarly, details relating to various procurements done during the period along with eligible input VAT credits are disclosed separately and the difference between the Tax payable and available and eligible Input VAT is net tax payable / refundable to Tax payer.

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