Statutory requirements
The Commercial Code requires all but the smallest businesses to keep an
orderly set of books.
The books must conform to a generally accepted standard
of record keeping, must provide a complete record of all transactions and must
be supported by a complete set of vouchers and other documentation. They
must be kept in euros and must be written-up in a living language.
If they are not in German, the tax authorities have the right to demand a translation.
The tax acts also contain provisions affecting the accounting records. Foremost
among these are the “principles of orderly computerised accounting systems”
and a formal requirement that the books be prepared and retained in Germany
at all times, unless the responsible tax office permits otherwise.
If this requirement is ignored, the tax auditors might see the company’s books as
“disorderly”. This could lead to difficulties in respect of any aspect of taxation
(including VAT) dependent upon the accounting records. However, there is a
procedure for applying for tax office permission to keep (electronic) books and
records in another country. In principle, approval will be granted where the tax
office is satisfied that its right to audit will not be compromised.
EU Forecast
euf:ba18e:100/nws-01