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Why do I need to perform a revenue reconciliation?

A revenue reconciliation confirms whether your financial accounting matches your VAT statements. We recommend that you perform a revenue reconciliation at the end of each tax period, so that any incorrect bookings can be identified in a timely manner.

In accordance with Article 128 II of the VAT regulations, your revenue reconciliation must demonstrate that your VAT declaration matches the figures shown in your annual financial statement (financial accounting). The following points must be taken into account and listed:

  • The reported operating revenue in the annual financial statement (profit-and-loss statement)
  • Revenue booked to expense accounts (losses for expenses)
  • Internal company settlements that are not included in operating revenue
  • Sales of operational assets
  • Advance payments
  • Other incoming payments that are not included in operating revenue
  • Cash-equivalent benefits (e.g. private use of a company car)
  • Revenue deductions
  • Accounts receivable losses
  • Closing bookings such as accruals, provisions and internal re-bookings that are not relevant to revenue
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