What is a tax audit and when does the authority initiate it?
A tax audit (kontrola podatkowa) checks whether you comply with obligations resulting from tax regulations. It begins upon the delivery of the authorization and presentation of the service ID, usually after prior notification of the intention to initiate the audit.
Legal basis of the tax audit
Tax audit procedures are mainly regulated by the Tax Ordinance (Ordynacja podatkowa). The rules for auditing economic activity are specified by the Entrepreneurs’ Law Act (Prawo przedsiębiorców). Fiscal-Customs Control conducted by the National Revenue Administration (KAS) is based on a separate KAS Act.
- Tax Ordinance – consolidated text (isap.sejm.gov.pl)
- Entrepreneurs’ Law Act – consolidated text 2024 (isap.sejm.gov.pl)
- National Revenue Administration Act (isap.sejm.gov.pl)
Stages of a typical tax audit
- Notification of the intention to initiate the audit, unless regulations provide an exception.
- Initiation of the audit by delivering the authorization and showing the auditors’ IDs.
- Audit activities at the company’s premises, accounting office, or tax office.
- Preparation and delivery of the audit protocol.
- Possible tax proceedings and decision if irregularities are detected.
Deadlines for initiating an audit after notification
A tax audit is initiated no earlier than 7 days and no later than 30 days after the delivery of the notification. Earlier initiation is only possible with your consent. From 2025, the notification should include a preliminary list of documents the authority expects during the audit.
What are your rights and obligations during a tax audit?
You have an obligation to provide documents and enable the audit to be conducted. At the same time, you have specific rights, including the right to a proxy, information, and raising objections to the authority’s findings.
Your basic obligations towards the authority
- providing documents and data necessary for conducting the audit,
- personal appearance or appearance through a proxy upon the authority’s request,
- providing explanations, answering auditors’ questions, and submitting statements,
- providing a workspace for the auditors and access to accounting systems.
Your most important rights as the audited entity
- right to prior notification of the intention to initiate the audit, with exceptions from the act,
- right to act through a proxy and to be present during audit activities,
- right to inspect the case files and make notes and copies from them,
- right to submit objections to the audit protocol within 14 days of delivery.
Representation by Progress Holding during the audit
You can appoint a proxy to represent your company before the authority. At Progress Holding, we prepare powers of attorney, handle correspondence with the authority, and participate in audit activities. For foreigners, we explain all actions simply, also in English, so that the audit is understandable and predictable.
What accounting documents need to be prepared for a tax audit?
The basis includes tax or accounting ledgers, invoices, tax declarations, and bank statements. Additionally, prepare agreements, warehouse documents, payrolls, and fixed assets registers – depending on the scope of the audit.
List of basic documents – general audit
| Settlement Area | Example Documents |
|---|---|
| Ledgers and records | KPiR or accounting books, revenue records, accounting policy, chart of accounts. |
| VAT and sales | VAT registers, JPK_V7 files, cash register reports, sales records, sales invoices. |
| Purchases and costs | Cost invoices, supplier agreements, acceptance protocols, business trip expense documents. |
| Income tax | PIT or CIT returns, advance payments, fixed assets registers, depreciation, loan documents. |
| Bank and cash | Bank statements, cash reports, payment and withdrawal vouchers, bank account agreements. |
| Employees and ZUS | Employment contracts and contracts of mandate, payrolls, ZUS DRA declarations, contribution transfers. |
| Contracts and logistics | Contractor agreements, orders, WZ (release documents), consignment notes, export and WDT documents. |
Additional documents for a VAT audit
- VAT sales and purchase registers for the audited period,
- JPK_V7M or JPK_V7K files and any corrections to these files,
- delivery confirmations, transport documents, export and WDT confirmations of departure,
- proof of payment for transactions with entities of increased sectoral risk.
Additional documents for an income tax audit
- register of fixed assets and intangible assets, purchase and sale documents,
- loan, credit, guarantee, and surety agreements along with repayment schedules,
- transfer pricing documentation, if you have transactions with related entities,
- statements of depreciation write-offs, reserves, and exchange rate differences.
Employee and ZUS documents
- employment contracts, managerial contracts, contracts of mandate and specific work contracts,
- employee personal files, remuneration and bonus regulations,
- payrolls, wage cards, confirmations of salary transfers,
- ZUS declarations and reports, confirmations of contribution payments.
How Progress Holding helps compile documents
Upon receiving the notification, we prepare a personalized list of documents for the audit for you. We check the consistency of ledgers, declarations, and bank statements before the auditors see them. This significantly reduces the risk of unpleasant surprises during the audit.
How to prepare electronic documents and JPK files for the audit?
If you keep electronic accounting records, the authority may request the submission of files in JPK format. You must be ready to generate them from your accounting system and transfer them in a manner agreed upon with the authority.
What JPK files can the tax authority request?
The Uniform Control File (Jednolity Plik Kontrolny) includes several structures, including JPK_V7 sent cyclically. Upon request, the authority may ask for JPK_KR, JPK_WB, JPK_MAG, JPK_FA, JPK_FA_RR, JPK_PKPIR, or JPK_EWP. You generate these files directly from the accounting software in XML format.
Standards for preparing electronic data
- ensure the consistency of document numbering between ledgers, VAT registers, and JPK files,
- prepare a description of your accounting system structure and account links,
- check if you have an archive of JPK files and their submission confirmations,
- limit access to data export only to persons responsible for contact with the authority.
Progress Holding support for JPK and systems
At Progress Holding, we test the correctness of JPK files before they are submitted to the authorities. If necessary, we help you transition to a system that meets the current requirements of the Ministry of Finance. For foreigners, we translate technical requirements into plain language and agree on a secure method for transferring data.
How to prepare your company step by step for the arrival of auditors?
It is best to treat the audit notification as a project with a clear plan. Divide the preparations into several simple stages, assign responsible persons, and monitor work progress.
Action plan after receiving the notification
- Carefully read the scope of the audit, the indicated period, and the type of tax.
- Designate the person responsible for contact with the auditors and document flow.
- Contact Progress Holding to discuss risks and the preparation schedule.
- Check declarations and JPK for the audited period, consider corrections before initiation.
- Compile documents according to the preliminary list from the notification and our check-list.
- Prepare a workstation for the auditors and access to accounting systems.
Organizational check-list for the day the audit begins
- list of persons authorized to represent the company before the authority,
- current powers of attorney for Progress Holding in paper or electronic form,
- register of documents handed over and copies issued to the auditors,
- internal instructions on who can speak to the auditors and to what extent.
How to behave during the audit
It is advisable that communication with the authority is handled by one responsible person. For more difficult questions, you can ask for time and respond in writing after consulting with us. Note oral agreements and ask for confirmation of important issues in the protocol or correspondence.
How long can a tax audit last in 2026?
The duration of all audits by one authority on an entrepreneur during the year is limited. It depends on the size of the company, according to the Entrepreneurs’ Law Act.
Time limits for audits according to the size of the entrepreneur
| Type of Entrepreneur | Maximum total audit time per year |
|---|---|
| Micro-entrepreneur | 12 working days |
| Small entrepreneur | 18 working days |
| Medium entrepreneur | 24 working days |
| Other entrepreneurs | 48 working days |
When might the limits not apply?
The law provides for exceptions, for example, in matters related to criminal or fiscal offenses. Exclusions may also result from EU regulations or international agreements. If the authority invokes an exception, ask for the specific legal basis in writing.
How to react to an overly long audit?
If you feel the audit is taking too long, check the total number of days from the protocols. You can address the head of the tax office with a request to adhere to the statutory limits. In contentious situations, it is advisable to consult a tax advisor and – if justified – the Ombudsman for Small and Medium Entrepreneurs.
What is the difference between a tax audit and a customs and fiscal control (KAS)?
A tax audit is, as a rule, conducted by the tax office based on the Tax Ordinance. A customs and fiscal control (KAS) is conducted by the National Revenue Administration and has broader powers, including customs, excise, and combating tax fraud.
Tax audit by the tax office
The tax authority usually notifies you of the intention to initiate the audit before it starts. The goal is to check whether you correctly settle taxes according to the Tax Ordinance. The audit ends with a protocol, which may or may not lead to the initiation of tax proceedings.
Customs and fiscal control conducted by KAS
Customs and fiscal control is conducted by the heads of customs and fiscal offices based on the KAS Act. It often concerns sectors particularly vulnerable to abuse, such as fuel trade, electronics, e-commerce, or excise goods. The powers of the officers are broader, and the audit may start without prior notification.
How to prepare for a KAS audit?
In the case of a customs and fiscal control, good documentation of logistics and the supply chain is particularly important. Prepare agreements with carriers, transport documents, customs clearance confirmations, and excise settlements. Progress Holding helps analyze the risk in these areas and prepare the company for a more demanding audit.
How does it look in practice? Progress Holding experience
For many years, we have provided accounting and advisory services to Polish companies and foreigners running businesses in Poland. Based on the analysis of over 300 audits and hundreds of official summonses, we see repeatable patterns of errors. We translate this experience into practical audit preparation procedures.
Our experience in tax audits
We most often support clients in VAT, CIT, or PIT audits, and in cross-audits. We prepare the company to submit ledgers, JPK files, and commercial documents in a consistent manner. This ensures that the auditors receive organized material, and the conversation focuses on the merits, not on chaos in the documents.
Most common errors we see before an audit
- lack of a preliminary audit of declarations and JPK before the auditors arrive,
- inconsistency between invoices, ledgers, JPK, and bank statements,
- unsigned contracts or settlements based solely on email correspondence,
- lack of documents confirming the reality of transactions with foreign contractors,
- unclear division of responsibility in the company and lack of a designated contact person.
How cooperation with Progress Holding works during an audit
We start with a brief analysis of the notification and current settlements. Then, we prepare a list of documents, a communication plan with the authority, and a division of tasks within your company. Finally, we assist in discussions with the auditors and in formulating objections to the protocol, if the situation requires it.
Frequently asked questions
Below you will find brief answers to the questions entrepreneurs most often ask before a tax audit. You can treat each one as a separate cheat sheet for your company.
Do I have to let an auditor in without prior notification?
As a rule, the authority should notify you of the intention to initiate the audit beforehand. However, there are exceptions, for example, in case of suspected crime or in specific VAT situations. Always ask to see the ID and authorization before providing documents.
Can I correct declarations after receiving the notification?
Yes, you can still correct declarations until the audit is initiated. However, remember that regulations differentiate the amount of interest depending on the time of the correction. It is advisable to consult corrections with an advisor to avoid additional disputes.
Can the audit be conducted remotely, based on electronic files?
Yes, the authority increasingly analyzes data based on submitted JPK files and document scans. Auditors may physically visit your company, but a significant part of the work is done at the office. This is why the quality of data in the accounting system is so important.
Can a foreigner appoint a Polish proxy for the audit?
Yes, an entrepreneur who is a foreigner can appoint a tax proxy. You notify the authority of the proxy, usually electronically or on the appropriate form. At Progress Holding, we take on the role of such a proxy and conduct communication with the authority on your behalf.
What should I do if I don’t have all the documents the authority asks for?
Do not conceal this; rather, explain the situation to the auditor in writing. Ask your contractor, bank, or other institutions for duplicate documents. We can help prepare explanations and set a realistic deadline for supplementing the missing documents.
Does an audit always end with a tax decision?
A tax audit ends with a protocol describing the auditors’ findings. If the authority does not find significant irregularities, the procedure may end there. A tax decision only appears in a separate proceeding if the authority deems it necessary.
The most important conclusion is simple: the better you prepare your documents and procedures, the more calmly you will go through the tax audit. You don’t have to do it alone – you can focus on your business, and entrust tax matters to specialists. Do you need professional support? Contact us at Progress Holding at +48 603 232 418 or by email office@progressholding.pl.
