What should you do after a tax audit notice?
A tax audit notice is not a penalty: it is a request for information governed by deadlines. Record the date and the stated response deadline, send nothing until you have identified exactly what is being requested and for which period, then provide one complete written response with your tax adviser.
- Published
- Last reviewed
- Applies to
- Belgian law in force on the review date
Definition — VAT audit
A review by the tax authorities of the consistency between your periodic returns, accounting records and supporting documents: taxable amount, rates applied, right of deduction, intra-Community transactions and the place where services are supplied.
The first 48 hours
Three useful steps, in this order: identify the exact purpose and period concerned, record the response deadline stated in the letter, and forward the notice to your accountant or tax adviser on the same day. Requesting an extension in time is generally easier than explaining a late response afterwards.
What the authorities may request
The books and documents needed to determine taxable income and VAT: journals, trial balances, purchase and sales invoices, professional bank statements, contracts and access to accounting data held electronically. The statutory retention period for these books and documents is ten years from 1 January following the end of the taxable period.
How to prepare the documents
Build an organised file rather than sending documents in bulk:
- the exact period under review and nothing beyond it
- supporting documents linked to each item being questioned
- a written explanation of unusual entries, including adjustments, credit notes and mixed expenses
- a dated copy of everything submitted
Can your accountant represent you?
Yes. An ITAA-certified accountant or tax adviser may assist the taxpayer and communicate with the authorities within the limits of the mandate granted. In practice, this prevents partial answers and centralises correspondence.
After a notice of adjustment
A notice of adjustment or notification of assessment ex officio opens a written response period that must not be allowed to expire. A failure to respond implicitly accepts the authorities' reasoning. If disagreement persists, an administrative objection, with its own deadlines, precedes any court proceedings.
Common errors and exceptions
- Responding orally during a visit without subsequent written confirmation.
- Providing data outside the audited period and broadening the discussion.
- Missing the response deadline for a notice of adjustment.
- Mixing private and business expenses without documenting the allocation method.
Next step
We analyse the file, prepare the response and communicate with the authorities on your behalf.