Tax office control in the field of VAT


Self-employed persons must take into account that their activities may be inspected by various offices and institutions. Most often, such controls concern settlements related to VAT. Check what the inspection of the tax office may concern!

Tax office control - what can cause it?

There are many reasons why the office is interested in a given taxpayer. It may often turn out that the entrepreneur shows much larger than usual amounts of tax to be refunded, especially in an earlier period. Such a situation may become the reason why the tax office decides to audit the taxpayer.

It may also be suspicious for the office to show large purchases of fixed assets, demanding a direct refund of large amounts, or to declare a very high input tax on small sales by the taxpayer.

The entrepreneur may be disadvantaged by submitting many corrections to the tax declaration and reporting large amounts of intra-Community transactions. The Office may also check whether the taxpayer complies with the obligation to record turnover and the amounts of tax due using cash registers.

What to pay special attention to in order to avoid negative consequences during the inspection?

The most common errors related to VAT arising during tax office audits include:

  • deduction of input tax on the purchase of a passenger car,
  • deduction of input tax due to leasing installments on passenger cars,
  • deduction of input tax on fuel invoices for passenger cars,
  • deduction of input tax on the purchase of accommodation and catering services,
  • premature deduction of input tax on the purchase of goods and services, for which the right to deduct arises in the settlement for the period in which the payment date falls (e.g. invoices for the so-called utilities).

The scope of control and VAT

Typical control activities performed as part of the control procedure are:

  • checking the amounts included in declarations with entries in VAT registers,
  • checking the compliance of entries in VAT registers with source documents (invoices),
  • control of source documents in terms of compliance with the related formal requirements,
  • control of the correctness of determining the moment when the tax obligation arises,
  • control of the correctness of determining the tax base,
  • control of intra-Community supply transactions and intra-Community acquisitions of goods,
  • checking the correct application of the provisions relating to the place of performance: especially the place of provision of services,
  • control of the application of appropriate tax rates,
  • correctness of reducing the amount of tax due by the amount of input tax.