MTA inquiry or tax audit — what to do?

A letter from the Tax and Customs Board (MTA) does not automatically mean a fine. Often it is data clarification, explaining a discrepancy or a routine check. Respond on time with the right documents.

Inquiry vs audit

• Inquiry / request for explanation — MTA asks for specific explanations or files (invoice, contract, KMD line)
• Tax audit — a formal procedure that examines a tax period or transactions in more depth

In both cases read the deadline and required documents carefully. Ignoring the letter escalates the situation.

First steps

1. Read the letter calmly — which period, which tax, which question
2. Tell your accountant the same day
3. Gather the ledger, invoices, bank statements, contracts, filed KMD/TSD
4. Reply by the deadline; if time is short, ask MTA for an extension before it ends

Do not send “something partial”. An incomplete reply triggers another inquiry.

What topics trigger inquiries?

• Mismatch between KMD and ledger / invoice data
• Large input VAT claims without clear business cost
• Related-party transactions, loans, fringe benefits
• Dividend or board fee without correct TSD reporting
• Turnover over €40,000 without VAT registration

How to write the reply

Be specific: cite invoice numbers, dates and amounts. Attach files in readable form (PDF, e-invoice). If you made an error, say so and file a correction — hiding it prolongs the review.

TSD is due on the 10th and KMD on the 20th; keep filing ongoing returns as usual during an inquiry unless MTA says otherwise.

Prevention

Solid monthly closing, bank reconciliation and documented payouts reduce inquiry risk. See tax declarations and bookkeeping management.

GPCONSULT OÜ

We help reply to MTA letters, assemble the document pack and file corrections when needed. Faster reply = fewer follow-ups.