How do I handle a tax audit procedure for turnover tax?
March 31, 2023 | 40,00 EUR | answered by Lina Sauer
Dear tax advisor,
my name is Sandra Hoffmann and I run a small business specializing in selling handmade jewelry. Over the past few years, my revenue has been steadily growing and I have been operating more internationally. Recently, my company has been selected for a sales tax audit, which naturally concerns me as a business owner.
I am unsure of how to handle such an audit and what consequences may arise for me. I have always tried to submit my sales tax returns correctly, but I am aware that mistakes can happen. I want to ensure that I do not encounter any legal issues and do not have to pay hefty penalties.
My question to you as an experienced tax advisor is: How should I best handle a sales tax audit? What steps should I take as a business owner to prepare myself effectively? Are there specific documents that I should have ready? And what options do I have for correcting any mistakes and avoiding potential penalties?
Thank you in advance for your support and guidance.
Best regards,
Sandra Hoffmann
Dear Mrs. Hoffmann,
Thank you for your inquiry regarding the sales tax audit procedure that your company is facing. It is understandable that you are concerned, but I want to reassure you that there are ways to best prepare and minimize potential consequences.
First and foremost, it is important that you have all relevant documents and records ready that are relevant to the sales tax returns and the business activities of your company. This includes invoices, receipts, contracts, bank statements, accounting documents, and any other documents that provide information about your revenues and expenses.
It is advisable to thoroughly review your sales tax returns from previous years in advance and ensure that all information is correct and complete. If you notice any errors or inconsistencies, it is important to correct them promptly. In general, it is possible to correct errors in sales tax returns retrospectively before the tax office carries out an audit.
If you are unsure whether your sales tax returns are correct or if there may be errors, I strongly recommend seeking advice from an experienced tax advisor. A tax advisor can not only help you identify and correct any potential errors but also assist in preparing for the audit.
During the audit, it is important to cooperate with the auditors and provide all requested documents and information. By providing all necessary documents and information and communicating transparently with the auditors, any discrepancies can be resolved more quickly and potential penalties can be avoided.
In conclusion, I want to emphasize that it is always better to proactively address potential issues and correct errors in a timely manner, rather than waiting and risking potential consequences. With good preparation and the support of an experienced tax advisor, you can ensure that your company navigates through the sales tax audit process successfully.
I hope that my response is helpful to you and I am available for any further questions you may have.
Best regards,
Lina Sauer
