Profit levels cannot reliably predict an inspection. Zero profit or rapid growth alone does not prove a breach. The useful task is to substantiate transactions and file on time, rather than manipulate figures.

Evidence for each transaction

Editorial folder structure: contract or order, invoice, evidence of delivery, payment and business purpose. Retain advice deliverables or goods delivery records. An invoice alone does not explain what the business received or why the expense relates to earning income.

Personal expenses and owner transactions

Paying from a company account does not automatically make a purchase tax-deductible. Assess private use, gifts, representation and employee benefits separately. Related-party transactions need appropriate terms and transfer-pricing records; a personal relationship does not replace a contract.

Monthly reconciliation

Reconcile bank, cash register, invoices and platform reports. Check fees, refunds, exchange rates and unpaid invoices. Match tax and insurance payments using the proper references. Assign responsibility for official electronic messages so the accountant receives both records and requests promptly.

When you find an error

Before the filing deadline, check the corrective return procedure; after it, check supplementary-return rules. Amending a return does not replace paying additional tax. An ongoing inspection restricts supplementary returns. Keep the original calculation, correction reason and filing confirmation.

Rights during an inspection

§45 of the Tax Procedure Act sets out rights and duties, including presenting evidence and commenting on findings. An authorised representative can act for you. Record what was requested and supplied, and meet the deadline stated in the notice.

A usable record system

Organise records by year, month and counterparty, with a backup. Retention depends on document type and applicable law; filing a return is not permission to delete everything. Before changing accountants, obtain the complete archive, filing history and outstanding balances.

Monthly reconciliation without forcing the figures

Suppose sales through a payment agent are €3,000, customer refunds are €100, fees are €90 and the bank receives €2,810. Check: €3,000 − €100 − €90 = €2,810. This does not mean revenue is only €2,810: sales, refunds and fees need separate explanations under the contract and accounting method. Do not record the €190 difference as one unexplained “fee” when €100 represents refunds.

Second example: a company receives a €5,000 owner loan and €4,000 in customer invoice payments. Bank credits total €9,000, but the loan is not a sale. Retain the loan agreement and links between customer payments and invoices. In an s.r.o., cash receipt does not always determine the month of revenue recognition; unpaid invoices cannot simply be excluded from the accounting result. An SZČO’s accounting method may differ.

Which document explains an expense?

For equipment purchases, retain not only the bank debit but also the invoice, an explanation of business use and, where required, a commissioning record. Payment proves cash movement, not by itself entitlement to a tax deduction. Long-lived assets may require depreciation, while personal use needs separate assessment. A restaurant receipt does not automatically become a business deduction because a corporate card paid it.

Create monthly folders separating sales, purchases, bank, cash, contracts and owner transactions. Use one identifier: the invoice number in the filename and payment reference. For instalments, identify every transfer; for one transfer settling several invoices, attach a breakdown. Store electronic documents in a readable format with a backup, not only in an employee’s messages.

An error or inspection: the sequence of actions

If an invoice was omitted, first identify its period, tax effect and reports already filed. Before the return deadline, an opravné daňové priznanie may be used; after the deadline, assess the need for a dodatočné daňové priznanie. VAT may require separate corrections to the return and control statement. Do not correct only the bank payment or delete the original document: preserve the history and explanation of the adjustment.

On receiving an inspection notice, establish its scope, period, authorised contact and response deadlines. Assemble documents relevant to the request, check the representative’s authority and document delivery. Explain the facts and supply evidence first; if conclusions differ, use the objections available under the procedure. Appoint one responsible person beforehand and log requests, documents and dates. An oral understanding does not replace a timely official response.

Related guides

Official sources