How do I proceed if I receive a tax audit regarding value added tax?
September 19, 2022 | 30,00 EUR | answered by Günther Hering
Dear tax advisor,
I run a small business and recently found out that I will be undergoing a VAT audit. This news has naturally caused me some worries and uncertainties, as I am not sure how best to proceed in this situation.
Regarding the current situation: My business operates in the trade sector and I have always done the accounting and VAT returns myself. I have tried to comply with the legal requirements, but I am not sure if everything has been correctly recorded and accounted for.
The current situation is that I am not sure if my accounting and invoicing in relation to VAT are error-free and whether I may face repayments or sanctions during a tax audit.
My concerns are that I do not have sufficient expertise in the area of VAT and therefore am unsure how best to prepare for the upcoming tax audit. I do not want to make mistakes and risk penalties, so I am wondering what steps I should take now.
So my question to you is: How can I best prepare for the upcoming tax audit in relation to VAT? Are there specific documents I should have ready? Should I seek advice from an expert? And what specific steps can I take to correct any potential errors and prepare as best as possible for the tax audit?
Thank you in advance for your assistance.
Kind regards,
Maria Schröter
Dear Mrs. Schröter,
Thank you for your inquiry regarding the upcoming tax audit concerning value added tax. It is understandable that you are concerned, as such an audit can always be associated with uncertainties. I will now outline some steps you can take to prepare for the tax audit.
First and foremost, it is important that you have all relevant documents and receipts ready. This includes your accounting records, such as cash books, invoices, bank statements, as well as all documents related to the VAT return. It is important that these documents are complete and properly maintained so that you do not encounter any problems during the audit.
Furthermore, I strongly recommend that you seek advice from an expert. A tax advisor or VAT specialist can help you review your accounting and correct any errors. They can also help you prepare optimally for the tax audit and support you during the audit process.
It is also advisable to prepare a voluntary disclosure in advance if you discover any irregularities or errors in your accounting. By making a voluntary disclosure, you can reduce potential tax payments and avoid sanctions.
Additionally, you should truthfully and completely answer all questions from the tax auditors to show transparency and build trust.
Overall, it is important that you prepare well and take all necessary steps to correct any potential errors and prepare yourself as best as possible for the tax audit. Professional advice from an expert can help you successfully overcome this challenge.
I hope that these tips will help you prepare for the tax audit concerning value added tax and wish you success in the audit.
Best regards,
Günther Hering, Tax Advisor
