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To keep in mind
Our three recommendations for tackling a VAT audit abroad with peace of mind:
- Understand the auditor's motivations, comply with local procedures and avoid VAT errors.
- Demonstrate control and confidence, leaving no room for doubt.
- In the event of a blockage or dispute, call in a VAT expert who is familiar with your case.
Announcing a VAT audit abroad
Your tax department may have to resolve a VAT dispute with a foreign tax authority. Dealing with officials from different countries (the effectiveness of the interaction will vary if the official is Romanian, German or French) can be a complicated task and it is essential to comply with local procedures: responding within the time limit, submitting the appropriate documents, providing precise explanations, etc.
Recommended practices for dealing with a tax audit abroad
Here are three recommendations for managing an international tax audit under optimum conditions while minimising the risk of conflict:
- It is crucial to understand the auditor's motivations when you are informed of a VAT audit. The questions asked can often indicate whether this is a standard audit or a harbinger of complications.
- A VAT audit abroad is a sensitive stage. Its importance should not be underestimated. Bear in mind that the principle of good faith is not recognised in VAT matters. All errors are subject to penalties, which can be severe.
- Master the issue: you need to prove from the outset that you know your file and internal procedures inside out. In short, present your version of the facts without leaving room for debate on the less clear aspects of the case.
The VAT expert's eye
If you get stuck, consult a professional. Quite often, this will help to unblock a situation that has got off to a bad start. Our VAT experts can analyse your chances of success in a VAT dispute free of charge.
Dispute: If the sums claimed are unjustified, a claim can be lodged to contest the adjustment at administrative level and, if necessary, in court. The long-term professional relationship and proximity we seek with all our clients give us an advantage: we know your business inside out. In the event of a VAT audit abroad, we will be able to identify avenues and scenarios for managing the situation as effectively as possible.
This close collaboration between your tax team and our firm guarantees an optimal result.
Do you have a VAT audit abroad? We offer a free videoconference to assess your situation and propose a tailor-made solution