GoBD – Definition and meaning

GoBD: Basics and importance for companies

The GoBD, which stands for "Principles for the proper keeping and storage of books, records and documents in electronic form and for data access", is an important legal framework for companies in Germany. They regulate how companies must manage their digital data and documents in order to fulfil legal requirements. The GoBD are particularly important for tax audits, as they define the standards that apply to the storage of and access to tax-relevant data.

Background to the GoBD

The GoBD were published by the German tax authorities in 2014 and replace the previous regulations on data retention. They are an important basis for companies to ensure that their electronic records are correct and traceable. The aim is to create a standardised approach and ensure transparency in the handling of digital data.

Important aspects of the GoBD

• Documentation: Companies must provide detailed documentation of their IT systems to ensure the traceability and integrity of data.
• Immutability: Entries in digital systems must be protected against unauthorised changes. This can be achieved through appropriate access rights and IT security measures.
• Retention periods: The GoBD stipulates how long certain documents, such as invoices or tax records, must be retained. As a rule, the period is ten years.
• Data access: In the event of a tax audit, it must be possible to provide the relevant data at any time. Companies are obliged to grant technical access to their data in order to fulfil government requirements.

Who is affected by the GoBD?

All companies that keep digital data and records are affected by the GoBD. This includes large corporations as well as small and medium-sized enterprises (SMEs). Even freelancers should familiarise themselves with the GoBD to ensure that they comply with the legal requirements.

The importance of GoBD for digitalisation

With increasing digitalisation, it is becoming more and more important for companies to manage their data efficiently and securely. The GoBD provides a legal framework that helps companies to optimise their digital processes while minimising legal risks. Compliance with these requirements can also increase a company's efficiency as they set clear guidelines for handling data.

GoBD and audits

The GoBD is of central importance in the event of audits by the tax authorities. Companies must prove that they have complied with the requirements. A well-documented digital system that complies with the GoBD can help to avoid potential problems and strengthen the trust of employees and business partners.

Illustrative example on the topic: GoBD

Imagine you run a small online company that sells products. One day, your company receives a request for a tax audit. In order to be well prepared for the auditors' request, you need to ensure that all your invoices, receipts and other relevant documents are stored in accordance with the GoBD. As you have stored all documents digitally in accounting software, it is essential that this data is unalterable. You have set up the security systems accordingly and complied with the retention periods.

During the audit, the auditors can access all the necessary information through your IT systems. Thanks to your forward-looking measures in accordance with GoBD, you not only facilitate the audit process, but also gain the trust of both the auditors and your customers with regard to the proper management of your company.

Conclusion

The GoBD provide an essential basis for the proper handling of digital documents. They are important for everyday business and especially for tax audits. Companies should proactively deal with these requirements in order to minimise legal risks and increase their efficiency. A structured approach to digitalisation and compliance with the GoBD can bring decisive long-term benefits for any company.

Further information on related topics can be found in our lexicon on data management or financial accounting.