What should I do when I receive an audit letter?

1️⃣ Don’t ignore the letter

Audit letters always include deadlines. Missing deadlines can create penalties — so act quickly.

2️⃣ Read the letter carefully

Check:

• which period is being reviewed

• what information is required

• how to submit the documents

• contact person at the tax office

3️⃣ Collect the requested documents

Typical documents include:

• VAT returns and payment confirmations

• invoices (sales and purchase)

• sales reports from marketplaces and shops

• OSS reports (if used)

• import/customs documents

• bank statements related to VAT transactions

• accounting records and summaries

4️⃣ Keep copies of everything you send

Always store digital copies for your own records.

5️⃣ Ask for help if you are unsure

If something is unclear, it is better to ask than to guess.

*Please note you may have to provide documentary data to support questions regarding your business model or to explain reasons for miss matches between ECS filings and ECS stated during yearly filing, Mismatches also between submitted ECA and centrally reported data plus additional information regarding purchases and movement of goods. 

How hellotax can help

We can support you with:

✔ copies of VAT returns we filed for you
✔ VAT reports and summaries from our system
✔ explanations of how amounts have been calculated
✔ coordination with your tax advisor (if applicable)

We are happy to clarify the data we submitted on your behalf.

What hellotax cannot do

To stay compliant and protect you, there are limits to our role:

❌ we cannot communicate with the tax office as your legal representative (unless formally authorised)
❌ we cannot provide legal or audit defense services
❌ we cannot prepare documents that were not originally provided or recorded
❌ we cannot guarantee the outcome of the audit

In many cases, you may need a local German tax advisor to support you directly with the Finanzamt.

If required, we can help you understand what kind of advisor you need and share your VAT data with them.

Does an audit mean I will get a penalty?

Not necessarily.

Many audits end with:

• no changes, or

• small corrections only.

Penalties usually happen only when:

• important information is missing

• VAT was clearly underdeclared

• deadlines were repeatedly ignored

• deliberate manipulation is suspected

Responding calmly, honestly, and on time greatly reduces risk.

How to reduce the chance of future audits

• file VAT returns on time

• ensure platforms and accounting data match

• keep invoices and records organised

• store documentation for at least 10 years

• inform us when your business changes (new countries, warehouses, platforms)

Good documentation is the best protection.

Need help?

If you’ve received an audit letter, please open a support ticket and attach:

• a copy of the letter

• the period the audit covers

• any deadline mentioned

Our team will review the request, explain the next steps, and provide any relevant VAT data we hold for you.

Key takeaway

An audit from the German tax office is common and often routine.
It doesn’t automatically mean something is wrong — but it does require careful, timely action.

We are here to support you with your VAT data and guidance, and we’ll help you navigate the process as smoothly as possible.