GoBD: New accounting rules

BY DECEMBER DATED NOVEMBER 14, 2014, THE GERMAN TAX AUTHORITY HAS AMENDED THE GOBD TO REFLECT ITS CURRENT TECHNICAL STATE.

The tax authorities have tightened business accounting requirements in very specific ways, especially when IT systems are used. This includes:

• Timely registration of country (register) records,
• Inability to change bookings and records,
• Storage of electronic receipts and EDP data,
• The need for process documentation of digital workflows.

The new GoBD doesn't just affect large businesses, it affects all businesses – including small operations and freelancers using the cash method. It is also noteworthy that preliminary systems and connected systems, such as material management systems or time tracking systems, are included in the requirements and deadlines for recording business transactions. Failure to comply with the new provisions can cause serious problems in the event of a tax audit. In doubtful cases, this may lead to an estimate of the tax base. Companies must already meet the first financial reporting deadlines for the month of January 2015. Under the GoBD, business transactions must be recorded by the end of the following month (February 2015) to be on time. Therefore, adjustments must be made to the accounting system.