Tax matters require self-employed professionals to have either in-depth tax knowledge, comprehensive tax software or professional advice from tax advisors or accountants. To avoid procedural errors and save time, you can therefore issue a power of attorney for tax advisors.
We explain when a power of attorney is worthwhile, what content and authorisations it includes and also, how you can revoke the power of attorney for the tax advisor.
Even when you work hard to do your bookkeeping right, complete all documentation and digital document management, tax issues can cause uncertainty. Have you thought of everything in your tax return? Have you taken advantage of all tax benefits and fulfilled your tax obligations?
It is totally fine to handle your bookkeeping and tax issues by yourself. But it's also possible to work with a tax advisor if you have doubts or don't have enough time for tax matters alongside your day-to-day business. In that case, you have the possibility of giving the power of attorney to your tax advisor.
A power of attorney authorises your tax advisor to represent you in tax matters vis-à-vis the Finanzamt (tax office). The power of attorney covers all tax-related activities that are within the scope of the power of attorney or have been expressly agreed.
In general, a distinction can be made between the Verfahrensvollmacht (power of attorney for proceedings) and the Bekanntgabevollmacht (power of attorney for disclosure):
Verfahrensvollmacht | Bekanntgabevollmacht |
Authorised tax advisors are permitted to take all tax-related actions required for tax matters on your behalf. | Authorised tax advisors can receive tax-related notices and administrative files from the Finanzamt (tax office) on your behalf. |
As a rule, it is advisable to issue both the power of attorney for proceedings and the power of attorney for disclosure. Please note that the power of attorney for disclosure is not automatically part of a power of attorney for tax advisors and must be issued separately. This also applies to powers of attorney for debt collection.
The actions and matters covered by a power of attorney depend on whether you issue it in an unrestricted or restricted form. An unrestricted power of attorney has the following powers of action and decision-making:
The authorised representative is entitled to take the following actions as your representative when in contact with the Finanzamt (tax office):
Other authorisations include data retrieval, data access and file inspection in connection with tax-relevant data. This includes access to your tax account, the pre-filled tax return, the VAT return and tax data filed with the Finanzamt. If it is relevant to tax matters, the tax advisor can also inspect your bank documents.
💡Tip from Accountable: Do you want in contrast to retain full control over your personal tax matters? Then Accountable offers you a solution for all tax obligations - from the unique AI Assistant to the preparation of correct tax returns and bookkeeping. Try it now for free.
If you issue your tax advisor with a power of attorney depends on various factors. The main reasons include:
💡Tip from Accountable: Please note that even with an authorised representative, you are still responsible for the content and accuracy of your tax return and tax declarations! So even when working with a tax advisor it's advisable to keep track of your bookkeeping and tax returns yourself. Software like Accountable can help.
To issue a power of attorney, you can use online templates for power of attorney. This will ensure that you fulfil the legal requirements in terms of form and content. Written proof of authorisation may be required if the Finanzamt has reasonable doubts about representation by tax advisors.
You can usually find free samples and templates for power of attorney declarations on the online platforms of your Finanzamt office in your respective region.
Make sure your written power of attorney contains the following details:
💡Tip from Accountable: If you also want to authorise your tax advisor to receive the official tax assessments by your Finanzamt, a separate power of attorney is required.
The Vollmachtsdatenbank (power of attorney database) is an online platform of the Bundessteuerberaterkammer (federal chamber of tax advisors), which tax advisors use to electronically record, transmit and manage sample powers of attorney issued to tax authorities.
The use of unchanged official templates for a power of attorney is mandatory in writing via the Vollmachtsdatenbank. You are therefore not permitted to make any changes to templates. In any case, the modern transmission procedure makes it easier for authorised representatives to issue powers of attorney and protects both parties against the tax authorities in case of doubt.
If you wish to revoke your tax advisor's power of attorney, you can do so informally, either verbally or in writing. As a general rule, you should always use a written cancellation to revoke a power of attorney for tax advisors for evidentiary purposes. Incidentally, a granted power of attorney does not expire automatically, so an explicit revocation or cancellation is always required.
You can find templates for revoking your power of attorney to tax advisors on the online platforms of your state government, as well as the templates for issuing it.
To do everything right when granting a power of attorney, you can follow these best practices:
💡If working with a tax advisor is too costly or inconvenient for you, you can use tax software such as Accountable. Accountable guarantees you error-free filing of your tax returns thanks to AI and the tax guarantee! Find out more here.
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Alexander Frank is a highly accomplished tax advisor and partner of Accountable, bringing a wealth of knowledge and experience to his role.
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