What to do during tax audits in Austria or Slovakia? Expert tips

1. Why tax audits should be taken seriously

Companies in Austria and Slovakia can be audited at any time. Tax authorities carry out these checks to ensure businesses meet their tax obligations properly.

While some audits are routine, others can result in back payments, fines, or lengthy proceedings. Cross-border businesses, in particular, must be well prepared, as special regulations often apply.
This guide shows you how to prepare for tax audits in Austria and Slovakia and avoid common mistakes.

2. When and why tax audits take place

Tax audits can happen for various reasons. In most cases, they are routine, but sometimes businesses are specifically targeted due to certain irregularities.

Common reasons for a tax audit include:

• Regular audits of corporations


• Discrepancies or inconsistencies in tax returns


• High VAT refunds or significant reported losses


• Suspicion of tax evasion or accounting errors


• Cross-border activities requiring closer scrutiny
  
  Our tip: Keep systematic records and fulfil all tax obligations to lower the risk of negative audit results.

3. Tax audits in Austria: Process and common pitfalls

In Austria, audits are conducted by the tax office (either as operational or external audits). They can cover various taxes, including VAT, corporate tax, and payroll taxes.

Process of an Austrian tax audit:

1. Audit notification: You’ll usually receive written notice in advance.


2. Defining the audit period: Typically, the past three to five years are reviewed.


3. Providing documents: Accounting records, tax returns, invoices, and contracts must be provided.


4. On-site or digital audit: Tax inspectors will review records and ask questions.


5. Final report and possible back payments: If errors are found, this may result in back taxes or fines.

Common mistakes leading to back payments:

• Missing or incomplete records (e.g., invoices lacking required details)


• Unclear business expenses without proper documentation


• VAT errors, especially with reverse charge transactions


• Incorrect payroll calculations, leading to unpaid social security contributions
  
  Our tip: Review your accounts early and provide any missing documentation before an audit.

4. Tax audits in Slovakia: Special features and risks

In Slovakia, tax authorities also conduct regular audits, with a focus on VAT and corporate tax.

Process of a Slovak tax audit:

1. Official notice: The tax office sends a formal notification.


2. Document review: Inspectors require detailed records and tax returns from previous years.


3. Interviews with key personnel: Business owners or accounting staff may be questioned.


4. Audit report: If discrepancies arise, this can result in back payments or fines.

Typical issues in Slovak audits:

• Undocumented transactions with foreign partners


• Incorrect VAT deductions or wrong VAT filings


• Insufficient evidence for business expenses


• Problems with social security contributions for directors
  
  Our tip:Ensure your bookkeeping is complete and well-documented in advance, as back payments in Slovakia often come with high interest charges.

5. How to prepare for tax audits

Tax audits are manageable if you are well prepared. Key measures for preparation:

• Maintain complete and proper bookkeeping
• Systematically store invoices, contracts, and tax returns


• Archive all tax-relevant documents for at least seven years
• Review VAT and reverse charge rules carefully
• Avoid errors or duplicate tax payments


• Pay special attention to cross-border transactions
• Calculate payroll taxes and social contributions correctly
• Ensure proper payroll accounting and social security reporting


• Apply for A1 certificates for posted employees
• Conduct regular internal tax reviews
• Involve tax advisors or internal controllers to detect mistakes early


• Simulate audits to reduce risks
  
  Our tip: Regularly review your tax strategy to avoid unpleasant surprises during an audit.

6. What to do if the tax office demands back payments?

If an audit results in additional tax demands or penalties, there are several options:

• Appeal the audit report: If claims are unjustified, you can file an appeal.


• Request instalments: If payment is difficult, apply for payment in instalments or a deferral.


• Seek professional advice: Tax experts can often help reduce or challenge unclear claims.
  
  Our tip: Never accept back payments without review – always explore your legal options.

Conclusion: Good preparation minimises risks

Tax audits in Austria and Slovakia are common – but poor preparation can lead to significant back payments or fines.
Companies that keep transparent records, understand their obligations, and conduct regular internal tax checks can approach audits with confidence. Early professional advice can minimise risks and prevent unpleasant surprises.

(This article is for general information only and does not replace professional legal or tax advice. For specific questions and personal support, feel free to contact us.)