On 10 July 2026, the Bundesrat approved a fundamentally revised administrative regulation governing external tax audits. The previous Tax Audit Regulations (BpO 2000) will thus be replaced by the new External Audit Regulations (ApO). Whilst this may initially sound like a purely formal renaming, it does entail substantive changes that businesses and the self-employed should be aware of.
Why the new name?
The term „Tax Audit Regulations“ had one major flaw: it gave the impression that the regulations applied only to commercial enterprises. In fact, however, the regulations cover all external audits within the meaning of the Tax Code, including audits of self-employed professionals, associations and private individuals. The new name, „External Audit Regulations“, reflects this more accurately.
The aim: faster examinations
A key aim of the reform is to speed up tax audits. The DAC7 Implementation Act of 2022 had already amended the Tax Code in this regard. The ApO now implements these provisions at the administrative level. In practical terms, this means:
- Audits should, as a general rule, commence shortly after the end of the last tax period audited.
- The so-called limitation suspension, which can delay the end of the assessment period, expires no later than five years after the audit order is served. This protects taxpayers from audit periods that remain open indefinitely.
- The former special status of the „prompt tax audit“ as a separate category no longer applies, as all audits are to be carried out promptly in future.
Risk-based audit selection
In future, the tax authorities are to base their selection of audits more heavily on risk criteria. This means that not every business will be audited with the same frequency. International insights from risk assessment procedures will be taken into account in this selection process. Large businesses and corporate groups will, as a rule, continue to be audited without interruption, i.e. immediately following the previous audit period. However, for the first time, there are now clear criteria setting out when, in exceptional cases, such a follow-up audit may be waived.
Framework agreements: Greater predictability for businesses
A new feature is the explicit provision regarding so-called framework agreements between the tax office and the taxpayer. Companies can enter into a binding agreement with the audit authority to set out in detail how the cooperation will work during the audit. Possible options include, for example:
- a common timetable for the entire examination,
- Deadlines for questions and answers between the auditor and the company,
- Arrangements regarding availability and communication channels.
However, it is not possible, for example, to agree to a complete waiver of certain areas of the audit or to conduct the audit exclusively outside the company’s premises.
Partial completion notice and digital documents
The ApO also sets out the procedures for dealing with partial audit reports. This allows individual audit items that have already been finalised to be formally confirmed whilst the audit is still ongoing, without having to wait for the overall result. Furthermore, documents submitted digitally may be stored and processed on secure systems.
What does that mean in practice?
For businesses and the self-employed, the ApO provides greater clarity regarding the procedure and duration of tax audits. The option to enter into framework agreements makes day-to-day audit work more predictable. Anyone facing a tax audit or wishing to prepare for one should be familiar with the new rules. In specific cases, it is advisable to seek tax advice, as the details of the ApO can have a significant impact on strategy and conduct during an audit.
Source: Haufe: Tax
This post and the accompanying image were created with the help of AI and have been editorially reviewed.
