All kind of tax audits, also including sales tax audits (Umsatzsteuersonderprüfungen), are carried out by the local tax office and are regularly announced by an audit order. The sales tax review (Umsatzsteuernachschau), on the other hand, does not have the full revision as its goal, but is only intended to give the tax office an impression of the actual situation, the actual staff employed and the actual business operations.
External examinations can essentially be targeted at any taxpayer. Traders or self-employed persons are regularly audited by the local tax authorities. Taxpayers with only surplus income (employees, landlords, capital income) may be subject to an external tax audit if the income exceeds EUR 500,000 per annum.
We support our clients in advance and throughout the duration of a tax audit. Important aspects of the preparation are the joint discussion of possible tax issues, which may be the subject of the external audit. The preparation of the documents should be provided digitally to the auditor, also with regard to the possibilities of evaluating the data provided. The close monitoring of the audit is, in our experience, advantageous for a timely execution and the most favorable completion of the audit with a final meeting or an audit report.
Our experience in international tax law relates to the legal changes initiated by the OECD within the framework of the so-called BEPS (Base Erosion and Profit Shifting) project and the reaction of national legislators to prevent international profit shifting. In addition, the tax administrations within the European Union, also in relation to third countries, continue to strengthen their cooperation and the mutual exchange of information.
In case that single audit findings remain without agreement during a final meeting, we will defend them for you as part of an external appeal.