This year, VAT returns and transfer pricing documentation are in the crosshairs of the tax authority

By: Trademagazin Date: 2023. 09. 11. 12:20

In recent years, the audit methods of the tax authority have changed radically: while in previous years the auditors “knocked” with a mandate letter, this has been replaced by the so-called “desk audit” procedures that can be carried out from the side of the table.

However, the fact that NAV conducts fewer and fewer on-site inspections does not mean that it is less active in its inspection processes – quite the opposite. Because the tax authority can easily detect taxpayer errors or omissions already in the risk analysis phase by using the huge data assets at its disposal in a targeted manner. Despite this, many people still do not count on the fact that NAV typically only initiates classic tax audits when a violation of the law is suspected, which is most likely to be followed by a sanction. That is why even before registering with the NAV, companies should seek expert help, especially when it comes to reviewing VAT returns and transfer pricing documentation, incomplete or incorrect preparation of which can result in serious fines, warns Tamás Kiss, head of SALDO Zrt.’s consulting business.