In order to maintain compliance, what should you confirm when working with VAT?

When working with VAT, confirming whether you charge customers VAT is crucial for maintaining compliance with tax regulations. This aspect is fundamental to proper accounting practices, as it directly affects the amount of VAT that you are responsible for collecting and remitting to the tax authorities. Understanding your VAT charging obligations ensures that you are collecting the correct amount from your customers, which is critical for avoiding potential penalties or fines from tax authorities for under- or over-collecting VAT.

This is particularly important in a business context because businesses are required to act as intermediaries for the tax authorities; they collect VAT on behalf of the government. If you mistakenly do not charge VAT when it is required, this can lead to a shortfall in the tax revenue that must be accounted for. Thus, confirming your obligations regarding VAT charges against customers helps ensure that your business remains compliant with VAT laws.