Handling of audits & reviews by the German tax authorities
If your company has been selected for a VAT audit in Germany, WW+KN will support you in your preparation and execution. There is a whole list of checks that only relate to one type of tax or to a specific situation.
There are to kind of VAT audits in Germany:
- VAT special audit: Here it's all about correct funnelling of VAT to the authorities and the correctness of deducted pre-tax amounts.
- VAT inspection: A VAT inspection is a special form of VAT audit. It is supposed to be a surprise effect. The investigator does not make an appointment, but appears unannounced at the door and requires access to documents relating to VAT.
How often can your company expect an audit by the tax authorities? It depends on your individual tax situation and the type of industry your company is active in. Notifications of audits and disputed situations can lead to various investigators being sent to your company by the tax department each year.