VAT tax audit: advice, anticipation and strategy
The VAT fiscal control
Who can be affected by a VAT fiscal control?
Why am I subject to a VAT fiscal control?
Can a VAT fiscal control be anticipated?
Why hire a tax lawyer during a VAT fiscal control?
VAT tax audit
VAT is the tax that contributes the most to the French state’s revenue every year. This is why VAT receives special attention from the tax authorities. Due to its significance in the state budget, VAT is one of the most scrutinized taxes by the tax authorities. In this regard, VAT is among the taxes that undergo the most adjustments following a tax audit. In 2021, out of the 288,850 companies that underwent a tax audit, VAT audits contributed 3.7 billion euros to France.
Who can be affected by a VAT tax audit?
VAT is a tax that applies to all businesses, except those subject to a micro-enterprise regime. Therefore, whether you operate as a sole proprietorship or as a company (SAS, SARL, SA, SNC, etc.), you are subject to the VAT regime.
Furthermore, beyond businesses, VAT may even apply to certain individuals when they engage in operations that allow them to opt for the VAT regime. In this regard, we can mention the para-hotel industry regime for furnished rentals. Of course, the taxpayer must then adhere to a set of legal, tax, and administrative obligations similar to those of traditional businesses in order to benefit from the VAT option.
Why am I affected by a VAT tax audit?
Today, tax authorities have access to computer software for analyzing and cross-referencing data, enabling them to detect inconsistencies in taxpayers’ tax declarations. These inconsistencies found in the tax returns of businesses often lead to numerous adjustments by the tax authorities.
Can we anticipate a VAT tax audit?
To anticipate and possibly avoid a VAT tax audit, the company has the option to have its accounts and tax declarations audited by a tax professional, such as a tax lawyer, who can alert it to potential tax risks that could result in a VAT adjustment. Thus, when such errors are identified by the tax lawyer, they can be rectified without waiting for the scrutiny of a tax audit that could prove financially disastrous for the company.
A tax lawyer can also provide you with a tax compliance certificate to ensure the conformity of your VAT.
Why call on a tax lawyer during a VAT tax audit?
The VAT regime is one of the most complex tax regimes. Beyond the questions related to the tax procedure that a company may face during a tax audit, VAT tax audits often focus on the substance of the case: taxable base, territoriality, assessment coefficient, triggering event, exigibility, VAT credit recovery, etc.
A tax lawyer will advise you on anticipating tax audits and determining the best VAT strategy.
Find out more about your lawyer specializing in VAT control: Maître Edouard PRUVOST, VAT tax lawyer
Master Edouard PRUVOST is a tax lawyer specializing in VAT. Holder of a Ph.D. specializing in corporate taxation, he has focused his activity for several years on VAT consulting and VAT tax audits for businesses. As an VAT expert, he advises and supports French and foreign companies in the tax aspects of their operations in France and internationally with regard to the VAT regime. Maître Edouard PRUVOST has handled several hundred cases in corporate taxation, including a significant number in VAT matters. Learn more.
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