Taxpayer Audits: What to Do When the STI Starts a Tax Audit?

A taxpayer audit is a process carried out by the State Tax Inspectorate (STI) to assess whether an individual or company is properly fulfilling their tax obligations. The audit may cover income, expenses, VAT, payroll, and other tax-related areas.

This procedure is not only a formal obligation but also a serious test of a company’s orderliness and accounting transparency. With timely preparation and knowledge of the main stages, even a complex audit can proceed smoothly—especially if the company uses a business management system like Rivile ERP, which helps centrally manage financial data and ensure accounting accuracy.

When Is a Tax Audit Conducted?

A tax audit may be initiated for various reasons:

• Suspicions of incorrectly declared taxes
• Large VAT refund amounts
• Reports of possible violations (anonymous or from other institutions)
• Random selection
• Based on a risk assessment model

Individual activity operators and companies whose declared data significantly differ from market averages or previous periods are often audited.

The STI conducts several main types of audits:

• Operative audit – a short audit focused on a specific situation
• Thematic audit – examines a specific tax area, e.g., VAT or payroll
• Comprehensive tax audit – evaluates all tax periods and areas
• Repeat audit – re-evaluation of a previously audited area

An audit usually begins with a written notice from the STI—the taxpayer is informed via an official notification. It includes:

• Reason for the audit
• Audit period
• List of required documents
• Deadlines

During the audit, STI may visit premises, inspect cash operations, interview employees, and analyze documents.

The most important thing is to stay calm and act methodically. Here are the key steps:

1. Read the STI notice – pay attention to the periods, areas being audited, and the list of documents.
2. Prepare the documents – gather all accounting, contractual, HR, and financial documents.
3. Assign responsible persons – appoint a contact person to communicate with STI auditors.
4. Use an accounting system – if you use Rivile GAMA for HR and document management or Rivile ERP, you can quickly retrieve the necessary documents and reports.
5. Consult an accountant or lawyer – if anything is unclear, it’s better to clarify risks in advance.

The best defense is prevention. Proper accounting, regular internal reviews, and digitized document archives help avoid surprises.

• Use ERP systems like Rivile ERP to have a consistent view of all financial operations.
• Ensure all documents are easily accessible and linked to specific transactions.
• Regularly review VAT, PIT, VSD, PSD, and other tax declarations and reports.
• Make sure employees know how to act during an audit—especially those who work directly with the STI.

• Submit all required documents and information on time
• Ensure STI officers can inspect premises or document storage locations
• Immediately report any disruptions or access issues
• Cooperate and act professionally

How do I know if the STI plans to conduct a tax audit?
The STI always informs in writing—via EDS or by mail. You may also notice increased attention or inquiries from the STI.

What happens if violations are found during the audit?
Additional taxes may be calculated, and penalties or fines may be applied. In more serious cases—sanctions may be imposed.

What documents are checked?
VAT invoices, accounting records, bank statements, payroll sheets, contracts, inventory documents, etc.

How long does a tax audit take?
From a few days to several months, depending on the area and period being audited.

What if I disagree with the audit results?
You can submit a reasoned explanation or appeal to the STI, and later—to the Tax Disputes Commission or court.

Can I request an extension for submitting documents during the audit?
Yes, by submitting a justified request explaining the circumstances preventing timely submission.