For several months now, we have been observing that the wind has changed in terms of VAT controls, and that the approach of the Registration Duties, Estates and VAT Authority (AED) has "radically" toughened!

We have identified two areas of control where we feel the word "radically" is not an exaggeration...

 

  • On the one hand, "traditional" audits from a "VAT technicality" point of view (deduction right, direct and immediate link, taxable event, etc.) are intensifying, and any corrections are very quickly followed by severe penalities (fines, criminal summons, etc.)!
  • On the other hand, AML/CFT anti-fraud and anti-money laundering audits are also being stepped up. 

With regard to the latter, the AED has set up a Financial Crime Department which carries out in-depth controls, either preventively or repressively, focusing in particular on the implementation of adequate and appropriate measures and procedures provided for in the law (reference to the amended law of 12/11/2004 (AML/CFT) and RGD of 01/02/2010).

In this context, we would like to remind you that procedures must be put in place internally without delay, and that the presence of AML/CFT documents, accounting records and the manager’s presence is required in the event of an inspection at head office.

 

We therefore urge you to pay particular attention to the processing and documentation of your files.

Our recommendations naturally apply to all activities, but particular attention should be paid to the real estate and automotive sectors.

Our teams are at your disposal for any further information or assistance you may require.

So do not hesitate to contact us !