Not true in my recent experience as described above. The taxman looks at each period separately and does not have a year end figure for vat purposes.
Now for normal tax he will look at the year scenario where the tax system will look at your vat output tax paid - calculate a potential turnover and compare it to your declared turnover. This is a reconciliation that you should do every year to make sure you have your ducks in a row.
Did you like this article? Share it with your favourite social network.