New supplier's audit

New supplier’s audit

In practice, there are cases when the company made a deal with a new supplier for the first time and it is necessary to check such supplier for «trustworthiness».

However, the company may have a question about how to check the new supplier. We generally recommend checking all new suppliers on the following minimum risks:

• whether the supplier is on the black list;

• whether the supplier is the debtor for enforcement;

• whether the supplier pays taxes or not;

• whether the supplier is bankrupt.

What can happen if I do not check suppliers?

If new suppliers are not checked, the company may have tax problems. Because tax authorities can exclude from the VAT deductions the amounts paid to the supplier if the supplier is on a black list. As a result, tax authorities will charge the company's taxes. And the supervising bodies will call company’s director and employees for questioning, conversations, explanations, which is not that pleasant and takes company’s time.

In addition to tax problems, the company may have financial problems: delay in delivery, delivery of poor quality goods, and delivery of defective goods.

Supplier’s audit procedure

We encourage companies to have an audit process for new suppliers that must provide a minimum document package for the company:

• a copy of supplier's charter;

• a certificate on absence of tax debt;

• supplier’s BIN, director’s ID card;

• licenses, permissions, if any required;

• supplier’s staffing table and other relevant documents.

The audit does not take a long time

The audit takes 15 to 30 minutes, but the audit will save company’s resources in the future. For companies to protect themselves and their businesses, suppliers shall be checked for «trustworthiness».

Our lawyers, on your request, can check and prepare the audit on any company within 30 minutes, and the cost of services is acceptable.