The tax authority will pay more attention to the fairness of the fulfilment of items indicated on an invoice. Regarding to this, they ask for detailed information from the taxpayers to become sure that the invoiced service or sale has been truly performed.
Among other, the following questions occur during a tax audit:
Questions regarding to activity and operation:
- What kind of business activity and where did the company perform during the audited period?
- Does the company perform any kind of activity at the company seat?
- What kind of tangible asset does the company have? (tangible asset registry)
- Does it employ employees? (name of employees, scope of their activity, salaries, period of their employment, qualification)
Questions regarding to partners, business partners:
- How and how long have they been in contact with the partner company?
- How was the contact kept, who did it order, whom did they conclude the contract, who did give the orders regarding to the tasks?
- Where were the meetings connecting to the assignments organised, who did (namely) participate on these?
- How and when did the company receive the call for proposal, who did the proposal prepare?
- What was the basis for the determination of price, from who did the receiver get information about the value?
- Who, when and where did see any reference work?
- How did the principal make sure of the assignee’s professional competence, about the personal and material requirements necessary for providing the service?
Questions regarding to the financial events and the audit of their fairness:
- Whether the financial events included in the invoices have been fulfilled, what kind of service (sale of product) do they exactly cover? The certain working procedure, the manner and circumstances of fulfilment shall be given in details (where and how did it happen, how often, who and how long did they work, was any attendance sheet or hour settlement sheet prepared).
- Who did the activity performed, own employee or a subcontractor? Data of subcontractor (name, VAT number, company seat), circumstances of the meeting with subcontractors (where, when, with whom).
- What kind of professional knowledge do the financial events require (e.g. programming language), who did have such qualification?
- Who, when, with what and where did the invoiced items fulfil?
- In case of product sale they also investigate the origin of product (from what kind of company did the seller received, connecting deeds).
- Where and who did the product receive, where was it transported, by what kind of transporter, what kind of transporting documents did he/she have?
- Where was the product stored, whether there were any products returned (reason, circumstances of return)?
In case of a manual invoice, the document from the registry of documents subject to obligation of strict accounting is also needed.
In case of a machine-made invoice, the document proving the rightful use of the invoicing programme is needed.
The documents relating to the financial events shall also be presented: proposal, order, contract, certification of fulfilment, statements composing the basis for invoicing.