Tax audit representation

If you or your company has been selected for a tax audit in Germany, WW+KN will support you in preparation and execution. There is a whole list of checks that only relate to one type of tax or to a specific situation.

Here is an overview of the types of checks that the tax authority can carry out regarding persons and entities taxable in Germany:

• Salary tax - external audit: In this investigation, only the tax withheld from the employees and transferred to the tax authorities are checked.

• Value-added tax - Special audit: Here it's all about correct declaration of VAT to the authorities and the correct assessment of deducted input-tax amounts.

• Value-added tax - Inspection: A business inspection is a special form of value-added tax 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.

• Business inspection: This form of external investigation is the most intensive and usually covers three or four years and all types of taxes applicable to the company.

• Company assessment: This type of external audit is not used in all the states of Germany. It is intended to check only specific types of information which cannot be completely determined by assessment officers in their boardrooms.

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.

If you have more questions or are interested in working with WW+KN, please contact us here. We will send you a checklist to help you prepare for your tax audit. Your contact person for this service is Matthias Winkler.