Do you know your supplier? Do you check business partners?


Hedging orders are government tools that can have a far-reaching impact on the functioning and even the existence of a business. Although the press publishes articles about how much the government has lost in court, statistics can be read the other way around – as how much has been won. Do not be lulled by the lost cases of the state administration.

The screening of business partners should be an absolutely standard procedure when negotiating any deal. But how deep should the screening go? Is the standard verification that a supplier exists (VAT number control) enough or is it necessary to examine other data? It always depends on the nature of the business relationship. Let’s look at the reasons for screening:

The available information sources are those that the government likes to list on its website, i.e. the Commercial Register, ARES, the register of “unreliable” taxpayers, etc.

What do you do if you have checked the supplier and it has not passed, but you still need to close the deal? Here the best course of action is to contact your tax advisor as soon as possible to discuss the correct procedure.

Do you also verify communication with the tax office? This is very typical. In addition to the assessment data, you also include information on the contact person who processed the VAT return on your VAT return for each period. This can be anyone, from a company executive to an accountant, a secretary, etc. If the tax administrator finds something wrong, it will use the information provided to contact that person. A very informal call will be made in which the tax administrator requests an explanation or the sending of invoices, contracts, etc. An unsuspecting accountant will pass on the information in the good faith that it actually simplifies everyone’s work, the administrator will not have to issue a notice, there will be no delay in returning the excess deduction, and there will be no further problems for anyone. Or will there be? The tax administrator is obliged to make an official record of the call. It is part of the file and also part of the information on the tax assessment. In many cases, this will indeed simplify the assessment. Unfortunately, however, the phone call may be more than a simple request for data submission, but also an alert to an unreliable payer. This is a problem. The reason for submitting specific documents may be not only to simplify the tax assessment process, but also to screen a contractor suspected of fraud.

What is the correct way to proceed? Always end the call and contact your tax advisor as soon as possible or request that the notice be sent. This is the only way to avoid unforeseen problems.

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