How to Prepare for a Tax Audit in Poland

A tax audit in Poland can be a daunting experience for the average person, especially if there's no clarity on what's going to happen. However, with proper preparation, the process can be smooth and stress-free. This article explains how to prepare for a tax audit in Poland, what it is, and how to mitigate potential problems. The Polish tax system is strict, yet straightforward.
It is important to start acting early and wisely.

Need an experienced accountant? Explore our services here.

What is a tax audit in Poland?

Tax control in Poland is carried out by the National Tax Administration, known as KAS. It ensures that Polish taxes are paid on time and without errors. Audits come in different forms. Sometimes, they involve document reviews directly at the KAS office—this is called a desk audit. In other cases, inspectors visit your office or home. This is called an on-site tax audit in Poland. There are also counter-audits—a review of transactions with partners. Everything is carried out according to strict laws, such as the Ordynacja podatkowa (Ordynacja podatkowa).

KAS can request any information. For example, whether the PIT-37 or VAT-7 tax return was completed correctly, or whether there are any questions regarding income from abroad. Inspectors have access to accounts through the STIR system. They can request any documents. This sounds strict, but there's no need to be afraid. Understanding how a tax audit is conducted in Poland helps correct any deficiencies in advance.

How the check works: step by step

It all starts with a notification. KAS typically provides 7-30 days' notice of an on-site inspection. However, if violations are suspected, they may arrive unexpectedly.

First, they collect information. They review declarations, look at account transfers, and check the JPK_V7M file.

Then comes the audit itself. During a desk audit, they'll request clarifications through the e-Urząd Skarbowy portal. During an on-site audit, expect inspectors with a ton of questions. They'll review financial documents, including invoices, contracts, and statements.

Sometimes they inspect an office or warehouse. They may speak with employees or the company owner.

After this, a report is drawn up with conclusions. If there are any errors, a response is given within 14 days. The results vary, from a complete clean bill of health to significant additional charges.

Why preparation is important

Tax reporting errors are common. Incorrect deductions, missed income, and failure to reconcile data with partners lead to fines for violations. In Poland, these fines are substantial – up to 720 daily rates, equivalent to thousands of zlotys. Intentional errors can lead to legal action. Reputations are also damaged. Banks and partners avoid those with problems.

The worst thing is when an audit comes unexpectedly. Incomplete accounting or missing documents complicate matters. But proper preparation saves you. It saves you from fines and puts your finances in order.

How to Prepare: A Step-by-Step Plan

To be prepared, start with an internal audit in Poland. Review declarations for three years—the typical timeframe for inquiries. Review the JPK files. The data in them should match the facts. Software like Sage or Comarch can be helpful. Compare invoices with your partners. An invoice error could raise questions.

Then, start preparing your documents. Gather invoices, contracts, payment orders, and payroll records. The law requires keeping them for five years. It's best to have copies on paper and in electronic format, such as PDF/A. Make sure your NIP or PESEL are correct. Inspectors are picky about details.

Prepare your employees. Explain what to tell inspectors and what not to tell them. Select a responsible person—an accountant or lawyer. They will communicate with the KAS. If you have income from abroad, check your residency status. Living in Poland for more than 183 days changes the rules. You may need to show foreign bank accounts.

Talk to a tax consultant (doradca podatkowy). They will ensure everything complies with the VAT whitelist—the database of honest taxpayers. Check your equipment. Access to the e-Urząd Skarbowy should be working. Check your micro-account for taxes. Inspectors may need space in your office. Make sure it's set up so they don't poke around in undesirable places.

Features for foreigners

Foreigners in Poland are subject to more thorough checks. Living here for more than 183 days makes a person a resident. This affects taxes on income from abroad. The employer provides a PIT-11, and the employee completes a PIT-37. Errors in these forms are common. There's also the issue of double taxation. Poland has treaties with other countries to avoid this. But everything must be recorded correctly.

How to communicate with inspectors

Taxpayers have rights. They can hire a lawyer to conduct an audit. But they also have responsibilities. Papers are returned on time, usually within seven days. Behave calmly. Answer only what is asked. Don't say anything unnecessary. If you don't like the report, file an objection within 14 days. As a last resort, go to the administrative court.

Business Tips

Business audits are a special case. They review taxes and transactions with partners. Ensure that invoice payments are made through whitelisted accounts. Suspicions about a counterparty will prompt KAS to investigate further. Keep an eye on your accounting. Review your data regularly. This saves time and money.

Need an experienced accountant? Explore our services here.

Conclusion

The question of how to prepare for a tax audit in Poland is important. It's an opportunity to conduct business and live a peaceful life. An audit isn't the end of the world. It's part of the system. Start with an audit today. Check the latest rules at podatki.gov.pl. Or find a consultant. Experts know: taxes in Poland require attention. But with the right approach, an audit is a simple step.

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