How to organize a document check before recording a VAT transaction

01

The direct answer

• Verify authenticity, integrity and readability of the invoice before recording it.
• Check that a reliable audit trail exists between the invoice and the transaction.
• Ensure accounting is detailed enough for tax control.
• Confirm that copies of the invoice are archived and retrievable on request.

02

Why these checks matter

The VAT directive requires that authenticity of origin, integrity of content and readability of every invoice, paper or electronic, be ensured from issue until the end of the archiving period; the taxable person decides how to ensure these, including through business controls that create a reliable audit trail.

At the same time, every taxable person must keep accounts detailed enough to allow VAT to be applied and checked by the tax authority.

03

The operational flow before recording

Steps

1. Collect the invoice and verify the identity of the supplier or issuer and the integrity of the content.
2. Link the invoice to the underlying transaction through a verifiable document reference.
3. Check that the data is consistent with what is needed for the VAT return, including exempt transactions.
4. Confirm that a copy is archived under conditions chosen by the taxable person, accessible without delay to authorities.
5. Record the transaction only after these checks are passed.

04

Hypothetical example

Hypothetical example: a company receives an electronic invoice for a supply of services. Before recording it, the accounting office verifies that the document contains elements confirming authenticity of origin, such as an advanced electronic signature or an EDI transmission agreed contractually, and confirms the content has not been altered before archiving a copy.

05

Verification checklist

• Identity of the supplier or issuer of the invoice confirmed.
• Invoice content unaltered compared to issuance.
• Audit trail between invoice and transaction documented.
• Data sufficient to determine tax due and deductions.
• Copy archived and retrievable on request of the competent authority.

06

How to structure the check in a software system

A company can choose to configure, together with a software partner, a flow where each incoming invoice automatically triggers a check on issuer identity, content integrity and transaction linkage, before an authorized role can complete the accounting entry.

It is useful to have the system retain the reference between invoice, transaction and archiving, so documents can be made available without delay in case of a request from the competent authorities.

07

Frequently asked questions on document verification

It is the taxable person who determines the method for verifying authenticity and integrity, which can use business controls with a reliable audit trail.

Copies of issued and received invoices must be archived, and the storage location can be chosen by the taxable person as long as documents are available on request.

08

Next step

Define together with your accounting team and software partner a pre-recording verification flow covering authenticity, audit trail and archiving, to reduce the risk of transactions recorded without compliant documentation.