New obligation following a tax audit

Following a tax audit by the tax office, craft businesses must take action themselves and correct their tax returns.

craft workshops are facing a new task after a audit by the tax office: If the audit leads to a change in the tax assessment, companies must check whether these changes also previous tax returns This is stipulated by the new Section 153 Paragraph 4 of the German Fiscal Code (AO) since 2025.

This means relief for the tax offices, as they previously conducted such audits themselves. What craft businesses now need to be aware of is explained below. Maximilian Krämer, specialist lawyer for tax law at German Tax Consultants Association (DStV).

What corrections do businesses need to make? 

Krämer explains the new regulation using an example:

• A craft business has submitted tax returns for the years 2020 to 2024.
• In mid-2025, the tax office will review the years 2021 to 2023.
• In 2021, the company purchased a machine for €9.000 and depreciated it over a useful life of three years. However, the auditors assumed a useful life of six years. As a result, the annual depreciation amount is halved, and the depreciation period is extended.
• The company must therefore correct the depreciation in its 2024 tax return from 3.000 to 1.500 euros.

The Obligation to correct This can also affect other types of taxes. Krämer gives another example: A business owner orders firewood for private use through the company but forgets to remove the order from the accounting records. The auditors then disallow the input tax and the business expenses. At the same time corporate or income tax increases.

You might also be interested in:

Operations management

Safety officers will only be required for companies with 50 or more employees.

The Chambers of Crafts in Germany - Chamber of Crafts and Trades of Saarland

Participation in the internship week is still possible

Craft policy

Healthcare: "Securing the competitiveness of skilled trades"

As a rule, tax auditors record such changes in amended tax assessments for all affected tax types. "Businesses can use this as a guide," says Krämer. "Only in exceptional cases do they need to check themselves whether other tax types are affected."

When do businesses need to correct their tax returns? 

The new obligation only applies under certain conditions, Krämer explains:

1. Examination order from 2025 onwards: The regulation applies to examination orders dated after December 31, 2024.
2. Legally binding amendment notice: Businesses only need to take action once the amended assessment notice is legally binding after review. "As long as an objection or lawsuit is pending, there is no obligation to make corrections," Krämer emphasizes.
3. Unverified tax returns: Only tax returns that were not part of the current audit need to be corrected – regardless of whether tax assessments have already been issued for those years.
4. Same situation: The obligation to correct only applies if the reviewed facts also lead to changes in other tax returns. However, this provision leaves room for interpretation. Does the legislator mean identical situations? "That would be difficult, since each situation must be assessed individually in the respective tax year," says Krämer. Or does it mean similar situations? "That would make sense, but it's not in the law. The tax courts will have to clarify that."

When and how do businesses need to take action? 

Once a legally binding amendment notice has been issued, businesses have two obligations:

• Notification requirement: Businesses must report the correction to the tax office "without delay," as stipulated in Section 153 Paragraph 1 of the German Fiscal Code (AO). "In practice, this means within one to two months," explains Krämer. Businesses need this time to review previous tax returns.
• Correction: There is no statutory deadline for the actual correction. In practice, according to Krämer, it takes two to three months. If the tax office is not satisfied with the process, it can request the correction, threaten a fine, or estimate the values ​​itself.

Tip: After reporting the discrepancy, businesses should contact the responsible tax officer at the tax office to clarify how the correction should be made. "This saves time and effort," advises Krämer. Some tax officers require a tabular overview, others only the largest invoices, or a corrected preliminary VAT return. "Fulfilling the tax officer's requirements speeds up the process and avoids further inquiries."

And what happens if businesses don't take action? "Those who ignore the reporting obligation risk tax evasion proceedings," warns Krämer.

DHB now also digital!Simply click here and register for the digital German Crafts Journal (DHB)!