As soon as you have entrusted Taxdoo with transferring powers of attorney, some information will be requested which we require in order to implement the process for you. One of the most important pieces of information is the first return to be submitted via Taxdoo.
The information we receive here determines for which preliminary return period our partners submit a return for the first time. Duplicate submissions always lead to follow-up questions from the tax authority and therefore usually require corrections and justifications, which may result in additional costs for you. To prevent this, you should consider the following aspects.
- Termination of the previous provider
The period you enter should generally follow the last period handled by your previous provider. For this reason, you should first find out at which date termination of the contractual relationship is possible and hence the associated tax representation. Here, you should not just ask for a possible termination date (DD.MM.YYYY), but also for information regarding which period will be reported for the last time in this case. In our experience, this can vary from provider to provider.
- Note the process duration
Transferring powers of attorney requires a formal process which take a certain amount of time to complete. We therefore recommend planning for a lead time of 8-12 weeks for the transfer.
- Consider the reporting frequency
This point depends on the termination date for the previous provider to some extent, but deserves mentioning on its own. In countries where returns are submitted quarterly (ES, IT, GB and others), a switch is only possible at the start of a quarter! Specifying a month within a quarter will not, therefore, be accepted.
In summary, you should ask yourself the following questions before entering the first reporting period:
- Have I made sure that my previous provider will no longer submit any more current returns from this preliminary return period?
- Is the period far enough in the future that a punctual submission is (ideally) possible considering the lead time (see above)?
- Are my returns submitted in this country on a quarterly basis (always in ES, IT, GB) and do I therefore need to enter a quarter as the first reporting period?