Statute of limitations (tax assessment period)

The limitation period defines how long a tax year stays open. Within it the authority can audit, assess additional tax and impose penalties, and the taxpayer can file corrections and claim refunds. After it expires, the year is closed for both sides. The basic period in most EU countries is three to five years from the end of the year in which the return was due, extended in cases of fraud, losses carried forward, cross-border transactions or an audit that has started.

The period is linked to record retention: documents must be kept at least until the year can no longer be reopened, which is why retention rules often run to ten years. In civil law a separate limitation period applies to claims between businesses, for example for unpaid invoices, usually three to six years. Kontevia keeps documents for the longer of the tax and civil periods of the user's country.