Tax inspections are part of everyday business life in Spain. Whether you are self-employed, an SME or a large company, it is likely that at some point the Tax Agency will decide to review your tax obligations. Knowing how to act, what rights you have and how to prepare can make the difference between a simple administrative check and a process that ends in unexpected penalties or settlements.

In this article, we explain how a tax inspection in Spain works and give you the keys to managing it effectively and smoothly.

What is a tax inspection?

A tax inspection is the procedure through which the State Tax Administration Agency (AEAT) verifies that the taxpayer, whether an individual or a legal entity, is correctly complying with their tax obligations.

The objective can vary greatly: reviewing tax returns, checking deductions, verifying income or expenses, or auditing transactions with third parties. Depending on its scope, the inspection may focus on a specific tax (e.g., VAT or corporate income tax) or cover several financial years and taxes.

How does an inspection begin?

The procedure usually starts with a formal notification sent by the AEAT. This notification indicates:

• Which taxes and periods will be subject to inspection.
• What documentation must be provided.
• Where and when the proceedings will begin (at the taxpayer’s headquarters, at the AEAT’s headquarters or by electronic means).
• Which inspection body will carry out the procedure.

From that moment on, it is highly recommended to seek professional advice, as the answers given may have significant consequences.

What are the stages of an inspection?

Firstly, the start of the procedure is normally notified by means of a registered letter. This notification will include the place, date and time for the person concerned to appear. There must be a minimum period of 10 days between the notification and the appearance.

It is also possible that, without prior notice, members of the AEAT may visit the taxpayer’s company, offices, premises, facilities, workplace or warehouses, or any other place where there is evidence of the tax obligation, even if only partial. In this case, the start of the inspection will be documented in a report.

Subsequently, the AEAT will request the submission of any documentation it deems appropriate in order to carry out the investigation effectively, which may include, among other things, invoices, accounting books, bank statements, payrolls, etc.

In certain inspections, the proceedings may be in person or also telematic. The latter are usually carried out to clarify specific issues without the need to visit the tax domicile.

Once the inspection has been carried out and the relevant documents have been analysed, if there are no incidents, a certificate of conformity is issued. However, if there are discrepancies, a certificate of non-compliance is issued, against which allegations may be made.

In the event of irregularities, the AEAT will issue a final settlement and, where appropriate, a proposal for penalties.

Normally, the inspection procedure must be completed within 18 months, except in certain exceptional cases, in which it will be completed within 27 months.

Key points for managing an inspection efficiently.

The two most important aspects for the proper conduct of an inspection are preparation and document organisation. It can be said that the best defence against an inspection is clear, orderly and consistent accounting. It is important to ensure that all supporting documents for transactions for at least the last four years, which is the usual limitation period, are kept.

To ensure that everything runs smoothly and to facilitate the work of the inspectors, it is important to respond rigorously. Each request must be answered in a timely, accurate and appropriate manner. It is not advisable to provide unnecessary documentation or give unsolicited explanations, as everything that is said or handed over may have legal implications.

To avoid mistakes when submitting all the required documentation, it is important and advisable that, upon receiving notification of the inspection, you contact professionals, whether tax advisors or specialised lawyers, as they will know how to guide you through the procedure, interpret the requirements and anticipate possible negative consequences so that they can be avoided. In complex inspections or those with a risk of penalties, their intervention can be decisive.

It is also important to know your rights during these inspections. These rights are set out in Law 58/2003, General Tax Law, in Article 34. Among other rights, taxpayers have the right to be informed of the purpose and scope of the inspection, the right to present evidence and arguments, and the right to appeal any administrative act that is detrimental to them. A good understanding of these rights, accompanied by sound legal advice, is one of the keys to effectively withstanding an inspection without fear of negative consequences such as a settlement or penalty.

In addition, anticipation is key to ensuring that an inspection does not take you by surprise. To this end, it is advisable to carry out regular internal audits, as these allow you to detect errors or risky practices before the AEAT does. With these audits, you can avoid major problems.

What happens if the inspection is not favourable?

If the inspection concludes with a settlement or penalty, the taxpayer can choose between several options.

Firstly, they can accept the proposal and pay what is often a reduced penalty.

They can also submit arguments within the time limit granted, which is usually between 10 and 15 working days.

Another option available is to lodge an administrative appeal through a request for reconsideration or an economic-administrative claim before the Regional or Central Economic-Administrative Courts (TEAR or TEAC).

If the administrative route has been exhausted and a satisfactory result has not been achieved, you can take the judicial route.

It is essential that, across this whole range of possibilities, you act within the deadlines and with a clear legal strategy.

Are you facing a tax inspection?

At Ayuela Jiménez, we have a team of lawyers specialising in tax inspections, with extensive experience in proceedings with the AEAT and defending the interests of companies, executives and professionals in complex situations. From the moment you receive the notification to the possible legal defence, we offer you comprehensive, strategic and reliable support.

If you are looking for legal peace of mind and effective management of the proceedings, contact us. We will assess your situation without obligation.