How do I proceed when I receive a VAT special audit announcement?
June 11, 2023 | 40,00 EUR | answered by Dietrich Hohenadel
Dear tax advisor,
I am Konrad Schröter and I run a small company that manufactures and sells furniture. Recently, I received a notification that a special sales tax audit is to be conducted on my business. This news has left me feeling very uncertain, as I have never been faced with such an audit before.
My business is constantly growing, and in recent years I have been making more deliveries abroad. As a result, I have been dealing with complex value added tax regulations. I always try to ensure that everything is billed correctly, but I am not sure if I may have made any mistakes.
I am worried that irregularities or errors could be discovered during the special sales tax audit, leading to high repayments or even legal consequences. Therefore, I am wondering how best to prepare for the audit and avoid potential problems.
What documents should I have ready and what steps should I take to prepare myself for the special sales tax audit? Are there any specific procedures or tips you can recommend to ensure that my bookkeeping and sales tax calculations are error-free?
I thank you in advance for your support and advice.
Sincerely,
Konrad Schröter
Dear Mr. Schröter,
I understand your concern regarding the upcoming special VAT audit and would like to help you prepare for it as best as possible. It is important that you have all the necessary documents ready and thoroughly review your accounting and VAT returns to identify and correct any potential errors.
First of all, it is advisable to neatly organize and archive all relevant documents such as invoices, delivery notes, contracts, payment receipts, bank statements, and other accounting records. Make sure that all information is complete and accurate, and that you can trace all transactions. It is also important to file all documents legibly and in chronological order to make it easier for the auditors.
Furthermore, I recommend that you carefully review your VAT returns in detail. Ensure that you have correctly recorded all sales and input taxes, especially in relation to cross-border deliveries. Also, check if you have submitted all necessary VAT returns on time and in full.
It may also be helpful to conduct an internal review of your accounting to uncover any irregularities or errors. If you notice any errors, you should correct them immediately and inform the tax authorities if necessary.
Additionally, I suggest that you consult with an experienced tax advisor or lawyer early on, who can assist you in preparing for the audit. An expert can provide valuable tips on how to best prepare for the audit and what measures to take to avoid potential issues.
Finally, I advise you to stay calm and see the audit as an opportunity to uncover and improve any weaknesses in your accounting. With careful preparation and professional support, you should be well-equipped to successfully pass the special VAT audit.
I hope these tips are helpful to you and am available for any further questions.
Best regards,
Dietrich Hohenadel
