Can you explain the process you follow when preparing VAT returns?

Sample answer to the question

When preparing VAT returns, I start by gathering all the necessary financial data, such as sales and purchase invoices, expense receipts, and VAT payable/recoverable information. Then, I enter this data into the accounting software and ensure that it is accurately recorded. Next, I review the data to identify any discrepancies or errors and make the necessary corrections. Once everything is in order, I generate the VAT return report and double-check it for accuracy. Finally, I submit the VAT return through the designated VAT filing system within the specified deadline.

A more solid answer

When preparing VAT returns, I follow a systematic process to ensure accuracy and compliance. Firstly, I meticulously gather all the financial data needed, including sales and purchase invoices, expense receipts, and relevant VAT payable/recoverable information. Using accounting software like Xero or QuickBooks, I enter the data, meticulously double-checking every entry for accuracy. Throughout this process, I pay close attention to detail and problem-solve any discrepancies or errors that may arise. To ensure compliance, I stay updated with VAT legislation changes and incorporate them into the return preparation. Moreover, effective communication is essential as I collaborate with the accounting team to ensure proper documentation and resolve any discrepancies in VAT accounts. Lastly, I submit the VAT return through the designated VAT filing system, meeting all deadlines and promptly addressing any issues or queries that arise.

Why this is a more solid answer:

The solid answer provides a more detailed and comprehensive explanation of the process of preparing VAT returns. It includes specific examples of accounting software such as Xero or QuickBooks, which demonstrates familiarity with the required tools mentioned in the job description. The answer also emphasizes the candidate's attention to detail, problem-solving skills, and compliance with VAT legislation. However, it could still provide more information on effective communication and teamwork within the process.

An exceptional answer

As a VAT Specialist, my process for preparing VAT returns involves meticulous attention to detail and effective collaboration. To start, I conduct a thorough review of relevant financial data, ensuring the accuracy and completeness of sales and purchase invoices, expense receipts, and VAT payable/recoverable information. I leverage my expertise in accounting software like Xero or QuickBooks to organize and record this data, setting up automated checks to prevent errors. Proactively staying updated with VAT legislation changes, I incorporate them into the return preparation, providing accurate and compliant filings. During this process, I actively communicate and collaborate with the accounting team, addressing discrepancies and resolving issues promptly. If any discrepancies arise, I engage in problem-solving to ensure accurate reconciliation of VAT accounts. Additionally, I proactively engage in VAT audits, collecting necessary documentation and effectively liaising with auditors. Through this comprehensive approach, I ensure timely and accurate VAT return submissions, maintaining the organization's compliance and providing valuable guidance on VAT-related matters.

Why this is an exceptional answer:

The exceptional answer provides a highly detailed and comprehensive explanation of the process of preparing VAT returns. It demonstrates the candidate's expertise in utilizing accounting software and their proactive approach to staying updated with VAT legislation. The answer also highlights effective collaboration and communication with the accounting team, as well as problem-solving skills and engagement in VAT audits. By providing specific examples and showcasing a holistic approach to the role, the answer goes above and beyond the job description's requirements.

How to prepare for this question

Familiarize yourself with popular accounting software such as Xero or QuickBooks, as they are commonly used for VAT return preparation.
Stay updated with VAT legislation and its implications for businesses. Learn about recent changes and how they may impact VAT return preparation.
Practice attention to detail and problem-solving skills. Familiarize yourself with common errors and discrepancies that may occur during VAT return preparation, and develop strategies to address them effectively.
Improve communication and collaboration skills. VAT return preparation often involves working with other team members, so focus on effective communication, active listening, and collaboration skills during your preparations.

What interviewers are evaluating

Familiarity with accounting software and VAT filing systems.
Effective communication and interpersonal skills.
Ability to work collaboratively in a team environment.
Strong attention to detail and problem-solving skills.