Tax inspection in virtual offices was very problematic at the beginning. In the first period of functioning of virtual offices, there were problems with separating the legal seat of the company from its actual place of business. The second problem that appeared in the Polish legal practice was the debt collection of the bailiff at the moment of having a virtual registration address. For this reason, initially the legal practice did not know what to do with such a legal and factual state. Fortunately, now the situation is different.
What documents are in the virtual office?
In practice, we can have three situations here:
All the documentation is located outside the virtual office.
In this case, the office has the opportunity to get acquainted with all the accounting documentation and other registration documents. Very often, when renting a virtual office, companies decide to rent space. This is because of the need to have space for the company in connection with obtaining subsidies from the European Union. This type of control is the most difficult. We know from experience that the Tax Officials do not make any problems because of this. However, they often demand additional documents and have to be delivered to the office after the inspection.
All the documentation is in a virtual office.
In this case, the control is very simple. The only thing that the tax office can pay attention to is the availability of the premises, its actual existence and the correct registration of the address. Accounting regulations allow you to store the documentation of the company and the company outside the company’s headquarters. As a result, Tax Offices already have information about virtual offices and are aware of the addresses of the more well-known ones.
Only basic documents can be found in the virtual office.
In this situation, the virtual office contains only registration documents (KRS applications – National Court Register, CEIDG – Central Records and Business Activity Information, etc.), founding documents such as articles of association or articles of association and application documents (e.g. VAT-R). As a result, officials in such a situation usually check them and ask where the rest of the documentation is located. This is due to the fact that in most cases it is in the seat of the accounting company and it is there that the other activities are continued.
What can be the basis for the tax office’s control? Tax Inspection – Reasons
- inaccuracies in the tax paid in relation to the declared turnover of the company,
- The company achieves a very high turnover but at the same time bank accounts indicate a low number of deposits to the account,
- business achieved a large turnover or profit in a very short period of time,
- company suddenly suffered a very large loss,
- the company often submits tax-related adjustments,
- the company conducts intra-community trade of very high heights,
- a request for reimbursement of the VAT has been made,
- tax inspection – rights and obligations of an entrepreneur
Law – tax control in a virtual office
Legislation has never directly prohibited such a solution. For a long time, virtual offices were in a grey legal area. However, this situation changed clearly on 7 August 2017. The Ministry of Finance issued an official tax interpretation confirming the legality of virtual offices. You can read more about this subject in the interpretation itself – Interpretations No. 14118.
Tax inspection – What activities may be carried out by the tax administration?
Typical control activities include:
- Checking the compliance of the vat with the declaration,
- checking the compliance of the vat with the source documents,
- formal check of source documents,
- revision of intra-Community transactions,
- monitoring the application of appropriate tax rates,
Should we rent a virtual office?
Do you have any questions? Call us! Contact information can be found here: CONTACT. If you want to know more about how a virtual office works and what benefits it brings, please take a look here:
- Virtual Office Krakow
- Blog: Virtual Office
- How to choose a virtual office?
- Tax inspection in virtual office
- VAT payer and registered office
- Headquarters – What is that?
- What will be my company’s address?
- For what period can you sign a virtual office / virtual address contract?
- How does the secretariat proceed if my client appears in the office unexpectedly?
- Note – Do you have to have any markings on shipments addressed to our company?
- What are the payment methods?
- When I get notified about correspondence?
- Can I collect my correspondence in person?
- Savings and a virtual office