Receiving a notice from the Spanish Tax Agency (AEAT) to begin an inspection procedure is a stressful situation for any freelancer or SME. However, staying calm and knowing your rights and obligations is crucial to managing it correctly. Far from being a cause for alarm, an inspection is a regulated procedure that, with proper preparation, can be overcome without issues.
Why does the Tax Agency launch an inspection?
A tax inspection is a verification process carried out by the AEAT to ensure the correct fulfillment of tax obligations. The reasons can vary:
* Informational discrepancies: Mismatches between your tax returns (VAT, IRPF) and data held by third parties (clients, suppliers).
* High VAT refund requests: Especially if they don't align with your usual business volume.
* Signs of an underground economy: Large cash transactions or a notable imbalance between declared income and assets.
* Random selection: Sometimes, it is simply part of the Tax Agency's annual control plans.
Taxpayer Rights During an Inspection
The General Tax Law (Ley General Tributaria) protects you with a series of rights that you should know and assert:
1. Right to be informed: You have the right to know the scope and nature of the inspection from the outset. The notification must specify the taxes and periods to be reviewed.
2. Right to representation: You can (and it is highly recommended) have a tax advisor represent you and act on your behalf throughout the process.
3. Deadlines and hours: The inspection must take place during the official hours of the public office, although another schedule can be agreed upon. The maximum duration of the procedure, as a general rule, is 18 months.
4. Minimal possible intervention: The inspection should disrupt the development of your business as little as possible.
5. Right to present allegations: You can make allegations and provide documents you deem appropriate at any time before the hearing phase.
Obligations You Must Fulfill
Along with your rights, you have unavoidable duties:
* Cooperate with the Administration: You must respond to the inspection's requests and provide access to the requested documentation (invoices, record books, bank statements, etc.).
* Provide documentation: It is crucial to have your accounting and invoicing up-to-date and well-organized. The implementation of new systems like VeriFactu aims precisely to ensure the integrity and traceability of invoicing records. If you're still unsure how it affects you, you can check our guide on What is VeriFactu? Guide for Freelancers in Spain.
* Allow access: If the inspection requires it and provides proper notification, you must allow officials access to your offices or business premises.
With fiscal digitalization, staying compliant is more important than ever. Remember that the VeriFactu electronic invoicing system will be mandatory for companies on January 1, 2027, and for freelancers and micro-enterprises on July 1, 2027. Failing to comply with these regulations can lead to significant penalties. Find out about the potential Fines and Penalties for not complying with VeriFactu and stay ahead of problems.