Tax Audit — How to Prepare and What Your Business Needs to Know

How an Audit Begins

A tax audit starts with a written notification delivered at least 7 days before the planned commencement (with exceptions: audits of excise duty, gambling tax, or cases justified by urgent need — in which case no prior notification is required).

The notification includes:

• Time scope (which months/years)
• Subject scope (VAT, PIT (personal income tax), CIT (corporate income tax), excise, etc.)
• Start date
• Details of the inspectors

Your Rights as the Audited Party

• Representation by a proxy — you have the right to act through a tax adviser, legal counsel, or attorney
• Right to information — inspectors must explain every requested document and the reason behind it
• Right to review protocols — you may read them and file objections
• Right to appeal — you have 14 days from the date of the audit decision to file an appeal
• Right to reimbursement of costs — if the audit finds no arrears, the tax office reimburses your costs (up to a limit)

Which Documents to Prepare

Standard documents that inspectors may request:

• VAT invoices (sales and purchase)
• Bank statements
• Contracts with contractors and employees
• KPiR (Revenue and Expense Ledger) or full accounting books
• JPK_V7M (Standard Audit File for Tax — VAT) / V7K declarations, PIT-36 / CIT-8 returns
• Tax documentation (rulings, applications)
• HR documents (if the audit covers payroll)

Tip: prepare everything in electronic form (PDF, Excel) — it speeds up the process and demonstrates professionalism.

How to Behave During an Audit

Do:

• Stay calm — an audit is not a conviction
• Answer factually and only what is asked
• Take notes on everything (who, when, what was requested)
• Hand over copies of every document — keep the originals
• Consult your adviser on any doubts

Don't:

• Don't guess — ask for specifics
• Don't sign anything under pressure (you have 14 days to file objections)
• Don't delete documents or data from your systems
• Don't contact other parties being audited in the same case (this may be deemed obstruction)

Most Common Mistakes During an Audit

1. Disorganised documentation — chaos in invoices prolongs the audit and suggests irregularities
2. Not engaging an adviser — many entrepreneurs try to handle it alone and end up with enforcement orders
3. Improvised answers — "I don't remember" or "I think so" work against you
4. Lack of meeting minutes — everything that is said should be on record
5. Ignoring deadlines — missing the deadline for objections means accepting the decision

Frequently Asked Questions