A tax audit successfully completed despite irregular invoicing
The owner of a construction company had irregular invoicing practices and did not properly separate advances, revenue, and types of works.
The situation we found
The owner of a company that carries out works on residential and commercial buildings had an irregular invoicing practice and did not properly separate advances, revenue, and types of works. As turnover grew, uncertainties also appeared regarding the VAT obligation.
How we started working together
After the Tax Administration launched an audit focused on the application of Article 10 of the VAT Law, the client approached us by recommendation because of the risk of additional assessment and penalties.
The solution
It was established that the client had not correctly applied the tax treatment of services in the construction industry. By reconstructing invoices and documentation we prepared correct calculations with reverse-charge VAT and submitted corrections to the Tax Administration during the audit.
Result and continued partnership
The audit was completed without additional assessments. The client now correctly applies VAT treatment, and KCM monitors projects, invoicing, and tax obligations so that operations remain compliant with regulations.
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