Why is large vat refunds causing suspicion with new accountant?

[Ireland.1]

Would be appreciate of your inputs please.

Our family's accountant has retired and my spouse has moved their businesses accounts to another practice.

The new accountant called my spouse into his practice for a meeting and was quite quizzical about why they applied for so much and so many vat refunds.

My other half was able to prove legitimate sales and purchase invoicing. As a sole trader they are running three specialised businesses and they purchase large volumes. They however have an impeccable record with Revenue.

Does this sound suspicious from our accountants end or are we missing the point?

 

[WindUp]

i wouldnt say it's unusual to query it --- as a general rule ; profitable businesses that operate at the 23% rate are not usually in a VAT Refund position

 

[T McGibney]

Damned if they do, damned if they don't...

 

[Joe_90]

I think it is reasonable to meet with new clients to get a feel for their business. Certainly if a client is constantly in a refund position I'd be asking the same question.

It would be remiss of me not too. Zero rated supplies can be confused with exempt supplies which can cause difficulty.