Title What gives rise to VAA Inconsistency?
Description

An inconsistency is raised when either of the following invoice details between the seller’s and buyer’s returns do not match:



i. Invoice number
ii. Date of supply,
iii. Supplier/purchaser PIN,
iv. Transaction amount



There are 2 indicators of an inconsistency:



a. Under-declaration (denoted as ‘UD’ in the inconsistency report) – The seller has declared an amount lower than that declared by the corresponding buyer
b. Non-declaration (denoted as ‘ND’ in the inconsistency report) – The corresponding seller has not declared the sale in their VAT return
 When the seller has not provided invoice details as prescribed in the VAT return but has captured sales made to VAT registered taxpayers as a lumped figure under the field ‘sales made to taxpayers not registered for VAT’, the system will register this as ND. This field, found in the last field of Sheet B in the VAT return is strictly used to capture sales made to the end consumer who is not registered for VAT. It should therefore not be used for sales made to VAT registered taxpayers who may end up claiming the amount as VAT input in their returns.
Category VAT Automated Audit (VAA)