How does the tax audit by the tax office proceed?
January 2, 2024 | 50,00 EUR | answered by Quentin Reuter
Dear tax advisor,
My name is Gertrud Maier and I run a small business in the services sector. In recent years, I have always prepared and submitted my sales tax returns independently. Now my business has been selected by the tax office for a sales tax audit. This news has made me uncertain and I am wondering how the sales tax audit by the tax office works.
So far, I have always carefully prepared my sales tax returns, but I am not sure if all the information was correct. I am worried that discrepancies could be discovered during the audit and I may have to face fines or other consequences.
Could you please explain to me in detail how a sales tax audit by the tax office works in practice? What documents need to be submitted and how long does the audit usually take? What happens if errors are found in my sales tax returns?
I would be very grateful if you could provide me with possible solutions to help me prepare for the sales tax audit and avoid any mistakes. Your support in this matter would be of great importance to me.
Thank you in advance for your help.
Sincerely,
Gertrud Maier
Dear Ms. Maier,
Thank you for your inquiry regarding the VAT audit by the tax office. It is understandable that you are worried if your company has been selected for such an audit. I will now explain in detail how a VAT audit works in practice and what steps you can take to prepare.
A VAT audit by the tax office is conducted to verify the accuracy of the submitted VAT returns. During the audit, all documents and receipts relevant to VAT are examined. This includes invoices, booking receipts, bank statements, contracts, and other documents that provide information about sales, input tax deductions, and other tax matters.
The audit typically lasts for several weeks to several months, depending on the size of the company and the complexity of the issues being examined. During the audit, you have the opportunity to provide the auditor with all necessary documents and answer any questions if needed.
If errors are found in your VAT returns, this can have various consequences. In minor cases, it may be sufficient to correct the errors and possibly pay additional taxes. However, in cases of serious errors or suspicion of tax evasion, penalties or other legal consequences may be imposed.
To best prepare for the VAT audit and avoid any errors, I recommend reviewing your documents to ensure that all information is correct and complete. If any documents are missing or discrepancies are found, you should clarify and correct them promptly.
Furthermore, I recommend contacting a tax advisor early on to review your VAT returns and correct any errors if necessary. A professional tax advisor can also support you during the VAT audit and help minimize any consequences.
I hope this information is helpful to you in preparing for the VAT audit. If you have any further questions or need assistance, please feel free to contact me.
Best regards,
Quentin Reuter
