- Tax information cross-checking is increasingly automated: a review can begin without a formal audit.
- A sound service passes three tests: it exists, it is delivered and it is properly documented.
- Documentation is part of the finished service: it must be in order from each period, not reconstructed later.
Review no longer starts with an audit
For years, reviewing a service started with a formal request from the authority. Today, much of the work happens earlier: tax receipts are automatically cross-checked against the economic activity of both the issuer and the recipient.
That changes the relevant question. It is no longer whether the company has invoices, but whether each invoice matches a real, complete service. For the authority, documentation that complies with the law is already part of that finished service.
Three tests every service must pass
The first is existence: a contract that clearly defines what is provided, to whom and with what scope. The second is delivery: verifiable deliverables that match that scope. The third is documentation: records for each period, consistent with what was invoiced.
If any of the three fails, the others lose strength. A flawless contract without deliverables, or deliverables unrelated to what was invoiced, leave the service exposed if the authority determines there is insufficient support.
A sound service is not defended with explanations. It is demonstrated with documents.
How far back a review can go
In general, the tax authority’s review powers reach back up to five years. Documentation that is not in order today may be needed several years from now, when reconstructing it is no longer possible.
What your finance team can do today
Confirm that every recurring service has a current contract with a defined scope, that each period’s deliverables are filed and that their content matches what was invoiced. What is documented at the time costs little; what is reconstructed later costs far more.
Frequently asked questions
Is the invoice enough?
No. An invoice shows a transaction took place, but it does not prove on its own that the service was provided. That takes the contract, the deliverables and the documentation for each period.
What is worth keeping?
The contract and its scope annexes, the deliverables for each period, execution reports or records, and any communication showing the service was provided as agreed.
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