For companies in the era of SAF-T, e-Invoicing and automatic data cross-checking. Managing tax risk. Defending the deductibility and the economic substance of transactions, in audits and in litigation. Available internationally.
SAF-T, e-Invoicing, e-VAT, e-Transport. In a few years, the authority has moved from paper audits to digital monitoring. It now cross-checks the reported data automatically. A mismatch between VAT returns, e-Invoice and SAF-T no longer goes unnoticed. It triggers a notice or an audit.
At the same time, the focus of the audit has shifted from form to substance. It is no longer enough for an invoice to exist. The authority checks the economic substance of the transaction. Was the service actually provided? Did it have a real economic reason? Do the documents that support it exist? Missing documents are now the main reason for refusing deductibility. This applies both to VAT and to corporate income tax.
For a company, this means that tax risk has shifted. It is no longer only about declaring and paying correctly. It is also about being able to prove, at any time, the reality and the economic rationale of every significant operation. And the consequences of a failed audit do not stop at the company. More and more, they reach the director's personal assets.
These are the areas that generate the most adjustments. The list is based on recent audit practice and the risks flagged by the authority.
Management, consultancy or intra-group service expenses, refused for deduction for lack of evidence that they were actually provided: contracts, reports, deliverables, justification of economic necessity.
Refusal of deduction on transactions that are deemed to lack substance, involve suppliers with tax problems, or are not documented well enough. This is still the most frequent source of additional obligations.
Company expenses used for the personal benefit of shareholders (property, vehicles, purchases without economic rationale). The authority reconsiders them as dividend distributions, with tax and ancillary charges.
Some sums are withdrawn as a "loan" without real documents and without the ability to repay. These can be reclassified as disguised dividends, with tax, penalties and director liability.
Differences between SAF-T, VAT returns, recapitulative and informative statements, e-Invoice and e-Transport. These are detected automatically and turned into grounds for a check.
Classifying the company in a risk category, with concrete effects. These are limits on VAT refunds, audits triggered as a priority and closer attention to every operation.
This page does not deal with ongoing prevention, which is covered by advice. Nor does it deal with challenging a decision already issued, which is covered by litigation. It deals with understanding and managing these specific risks when the company is exposed.
Finding, before an audit, the areas where economic substance or documentation are vulnerable. Then reinforcing them while there is still time.
Building and presenting, during the tax audit, the file that proves the reality and economic rationale of the contested transactions.
Analysing and documenting loans and operations between the company and shareholders or group companies. The aim is to prevent reclassification as disguised dividends.
Assessing the risk that a company problem turns into personal liability. This is dealt with in detail on the dedicated page.
Because the invoice alone is no longer enough. The audit checks economic substance. Was the service actually provided? Did it have an economic reason for the company? Do the documents that prove it exist (contracts, reports, deliverables, correspondence, work records)?
Expenses for management, consultancy or intra-group services are the most exposed. Today, an invoice without a file showing the actual provision is a risk, not a protection.
It is when the authority reclassifies sums or benefits received by shareholders as dividend distributions. This happens even if they were recorded otherwise: as a loan, as a company expense or as a payment.
Frequent examples are loans granted to shareholders without real documents and without repayment. Others are company expenses on goods used personally (property, vehicles) and payments without economic rationale. The result is dividend tax, plus penalties, and sometimes director liability.
They have become a sensitive area. Using a loan instead of dividends is viewed with suspicion. This is especially true when real documents, a market interest rate or the ability to repay are missing. It is also especially true when the loan affects the company's capitalisation.
It does not mean the loan is prohibited. It means the loan must be structured and documented with rigour, at market price, to withstand a possible audit. An analysis of the current structure, done in advance, can prevent a costly reclassification.
Classification in the risk category has concrete effects. It can lead to limits on VAT refunds and can trigger audits as a priority. It also prompts the authority to pay closer attention to the company's operations.
The risk criteria have changed and are updated regularly. It is useful to assess the company's position against these criteria and to have a strategy to reduce risk. This is useful especially for firms with frequent VAT refunds.
A tax audit generally takes place within the limitation period of the right to establish tax obligations. In practice, an audit in 2026 can cover several earlier years. This is why records must be kept and maintained in a form that withstands a check years later.
This page is part of tax assistance.
It may be an ongoing audit, a transaction with related parties or an expense you expect to be challenged. In each case, a conversation clarifies the real risk and what can be reinforced in the defence.