Scope and Rates
The following transactions are subject to VAT in the Czech Republic:
- supply of goods or services with the place of supply in the Czech Republic, where it is a supply made by a taxable person in the course of its economic activity
- acquisition of goods from another EU Member State for consideration by a taxable person in the course of its economic activity or by a legal entity that has not been founded for the purpose of pursuing business activity, where the place of acquisition is in the Czech Republic
- acquisition of new means of transport from another EU Member State also by a non-taxable person
- import of goods with place of supply in the Czech Republic
Exceptions to the above mentioned general rule exist. Furthermore, certain supplies made for no consideration are deemed to be subject to VAT, for example:
- certain free of charge supply of goods, private use of business assets
- putting fixed assets of own production into the condition fit for use if the VAT payer uses these assets for purposes of transactions with limited right to deduct input VAT.
The standard rate of VAT is 20 percent. The standard rate was supposed to be decreased to 17.5% as of 1st January 2013ç However there has been a new proposal to increase it to 21% instead.
Reduced rates
There is a reduced rate of 14 percent (potential increased to 17.5 or to 15% depending on the vote on current proposals) for certain goods and services, including:
- construction and assembly works related to construction of certain categories of residential buildings and flats in these buildings
- construction and assembly works related to alteration or repair of completed residential buildings and flats in these buildings
- sewage services, water supply, and related services
- certain health and social care services
- public transport services
- accommodation services
- granting the right of admission to film performances, museums and other similar establishments
- granting admission right to sport events, the use of sport facilities for sport activities
- food products including beverages (with exception of alcoholic beverages)
- heat and cold (refrigeration)
- books, brochures, newspapers, and magazines where advertisements do not exceed 50 percent of the space, picture books, books for children, and some other printed paper
- supply of specific products, services, and aids for the handicapped and health purposes
The reduced rate shall apply only if transaction complies both with the description and corresponding code of harmonized product/service classification.
Zero-rate
There is an extensive list of supplies which are zero rated, if certain conditions are met, including:
- international transport of goods relating to export or import of goods
- exports of goods
- intra-Community supplies of goods, etc.
There is an extensive list of supplies which are exempt, if certain conditions are met, including:
- insurance services
- financial services
- postal services
- betting, gaming, and lotteries
- education
- health and social welfare
- television and radio broadcasting
- transfer of land including financial leasing of land (excluding the transfer of building land)
- transfer of immovable property (buildings, flats, and non-residential premises) - after three years of the first approval (occupation certificate) or from the date when the use of such property commenced whichever is earlier.
- leasing of land and immovable property (apart from short-term renting of immovable property, renting a parking space and hire of safes or permanently installed devices and equipment). In case of leasing of immovable property, option to tax exists in certain situations.
- Supply of services by an independent group of persons, which is a legal entity, to its members who only perform VAT exempt supplies or supplies not subject to VAT.
Note: it is not possible to recover VAT incurred in making exempt supplies.
- excise duties (on mineral oils, alcohol, beer, wine and wine semi-products and tobacco products)
- environmental taxes (on gases, solid fuels and electricity).
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Registration
Czech Entities (taxable persons established in the Czech Republic)
Czech entities are required to register for VAT in various situations, including:
- a Czech entity makes supplies in the Czech Republic exceeding the VAT registration threshold of CZK 1,000,000 (about EUR 41,000) in 12 successive calendar months
- a Czech entity acquires goods from another EU Member State where the value of goods excluding VAT exceeds CZK 326,000
- a Czech entity acquires from another EU Member State new means of transport or goods subject to excise tax
- a Czech entity receives a service or goods with installation with place of supply in the Czech Republic from a taxable person not established in the Czech Republic and not having fixed establishment in the Czech Republic involved in the supply of goods with installation
- a Czech entity who provides services under Article 44 of the Council Directive 112/2006/EC with place of supply in another EU Member State
- a Czech entity who receives services under Article 44 of the Council Directive 112/2006/EC with place of supply in the Czech Republic from a taxable person not established in the Czech Republic and not having fixed establishment in the Czech Republic involved in the supply of services
- voluntary registration is possible for a Czech entity.
Non-Czech Entities (taxable persons not established in the Czech Republic)
There is no registration threshold for non-Czech entities. Non-Czech entities are required to register in various situations, including:
- a non-Czech entity makes a taxable supply for which it has to account for Czech VAT or makes a zero rated supply (with certain exceptions)
- a non-Czech entity creates a fixed establishment in the Czech Republic(unless this fixed establishment performs only exempt supplies)
- a non-Czech entity acquires goods from another EU Member State in the Czech Republic, including new means of transport and goods subject to excise tax
- a non-Czech entity that receives a supply with place of supply in the Czech Republic subject to local reverse-charge in the Czech Republic (e.g. construction and installation works, waste and scrap)
- a non-Czech entity which purchases in the Czech Republic construction related services or goods with installation which are covered by local reverse-charge
- a non-Czech entity which sells and delivers goods from another EU Member State to customers in the Czech Republic who are not VAT registered (distance sales), where the value of those sales exceeds a threshold of CZK 1,140,000 (about EUR 46,700) in the calendar year
- a non-Czech entity established outside the EU and which does not have a fixed establishment in the EU which supplies electronically supplied services or telecommunication services to customers in the Czech Republic who are not VAT registered. If, however, such entity supplies electronic services to customers in other EU Member States it can opt to register for VAT in one Member State rather than all of them (subject to certain conditions). In this case it still has to account for VAT on supplies it makes at the rate prevailing in the country of the customer but it only has to deal with one Member State for filing and payment purposes.
- Voluntary registration is generally not possible for entities not established in the Czech Republic. However, voluntary registration is allowed if the entity will perform transactions in the Czech Republic which gives right to deduct VAT.
There is no specific penalty for non registration or late registration. However, if VAT liability is not declared and paid within statutory deadlines, penalty interest, penalty for late filing of VAT return or additional penalty if tax is assessed by the tax authority might apply.
In the case of Czech entities where the obligation to register for VAT arises due to exceeding of the VAT registration threshold but the entity did not register, the VAT shall be assessed by tax administrator in a substitute manner. The tax administrator shall assess the VAT according to the VAT rate in effect at the date when the taxable supply was performed. Where a tax administrator determines VAT in a substitute manner, a supplementary VAT return is not permissible. Furthermore, the above mentioned penalties apply.
No. However, in practice, this is often allowed by tax administrators if there will be future taxable/zero-rated supplies which trigger the obligation to register for VAT.
It is possible to avoid registering and accounting for Czech VAT when making certain supplies.
In the following examples the obligation to account for the VAT due can be shifted to the customer provided that it is registered for VAT in the Czech Republic.
Triangulation
If the business registered for VAT purposes in other EU Member State is an intermediate supplier to a Czech buyer of goods which the intermediate supplier purchases from a business in an EU Member State other than its own and where these goods are delivered from there directly to the Czech Republic, VAT due can be accounted for by the Czech customer (see section Invoices); i.e. intermediate supplier is not obliged to register for VAT in the Czech Republic with respect to this transaction. Certain conditions, however, must be met.
Call-Off Stock
Transaction where a person registered for VAT purposes in another EU Member State transfers its own goods from another EU Member State to the Czech Republic, where the goods are held in a local stock and predetermined for a sales contract with one local buyer, but title does not pass to that buyer until the goods are called off from that stock, may be treated as an intra-Community acquisition of goods by the local buyer. One of the main conditions for the call-off stock simplification to be applied is that the supplier who supplies goods through call-off stock is not registered for Czech VAT.
Supply and Install
If a person which is either established in non-EU country or established and registered for VAT in other EU Member State supplies goods with installation/assembly in the Czech Republic, the Czech customer should account for any VAT due, provided that the customer is registered for Czech VAT or person identified for VAT. This is on condition that the supplier either does not have a fixed establishment in the Czech Republic or if it has a fixed establishment in the Czech Republic, this fixed establishment is not involved in the supply of goods with installation.
Reverse Charge Services
These services are covered in more detail at section International Supplies of Goods and Services.
Bear in mind that all these provisions are subject to particular requirements.
No, the Czech VAT law does not contain any provision relating to fiscal representative.
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VAT grouping
Yes.
In accordance with VAT Act, VAT group is a group of related persons who are established in the Czech Republic or who have a fixed establishment in the Czech Republic. In the case of overseas company, only its Czech fixed establishment can be included in the VAT group.
VAT group is considered a separate taxable person.
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Returns
VAT payers who are established in the Czech Republic or who have a fixed establishment in the Czech Republic submit VAT returns on a monthly basis if their turnover in a previous calendar year exceeded CZK 10,000,000. If the turnover did not exceed CZK 10,000,000, VAT returns are submitted quarterly. If the turnover exceeded CZK 2,000,000 but did not exceed CZK 10,000,000, VAT payer can opt for monthly filing, on condition that this is announced to the tax administrator until 31 January of a calendar year.
VAT group shall submit VAT returns on a monthly basis.
VAT payers which are not established in the Czech Republic and do not have a fixed establishment in the Czech Republic have a taxable period of a calendar quarter.
If the Czech VAT payer carries out intra-Community supply of goods from Czech Republic to another EU Member State to person registered for VAT in another EU Member States or transfer of own goods to another EU Member State (with certain exceptions), the VAT payer is required to file Recapitulative Statements (EC Sales List). EC Sales List is filed on a monthly basis.
The Czech VAT payer shall file EC Sales List also in situation where it supplies services under Article 44 of the Council Directive 112/2006/EC with place of supply in another EU Member State, if the person liable to declare and pay VAT is the customer. Based on prevailing interpretations this applies only to VAT payers established in the Czech Republic or who have a fixed establishment in the Czech Republic, if this fixed establishment is supplying the service. EC Sales List is generally filed on a monthly basis. However, if VAT payer's obligation to file EC Sales List arises only with respect to supply of services, EC Sales List, filing of EC Sales List shall be done in the same frequency as filing of the VAT return.
VAT registered businesses with a value of dispatches or arrivals of goods to or from other EU Member States, which exceed a threshold (CZK 8,000,000 for dispatches or CZK 8,000,000 for arrivals per calendar year) must complete Intrastat declarations each month.
Czech VAT payers who supply or receive transactions which are subject to local reverse-charge (e.g. construction and assembly works, waste and scrap) must file specific recapitulative statements on a monthly basis. These statements must be filed in electronic form.
Amounts on VAT invoices have to state amounts in Czech currency. Exchange rate of the Czech National Bank effective for the person issuing the invoice as of the day of obligation to report VAT has to be used. In the case of import of goods, exchange rate valid for customs purposes shall be used in order to convert the amounts into Czech currency.
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VAT recovery
Yes. Person registered for VAT in another EU Member State who are established in another EU Member State or have a fixed establishment in another EU Member State should make a claim under Directive 2008/09/EC. The condition for VAT refund is the submission of a VAT refund application via the electronic portal in another EU Member State where the person registered for VAT is established or has a fixed establishment. Deadline for filing a VAT refund application is 30 September of the calendar year following the period subject to VAT refund claim.
Persons who are not established in the EU and do not have a fixed establishment in the EU should recover the VAT under the 13th Directive (86/560/EEC). Application for VAT refund is filled with Tax Authority Praha 1. Deadline for filing the application is 30 June of the calendar year following the period covered by VAT refund claim.
Note that refunds based on the 13th Directive do not cover such things as travel costs, accommodation costs, meals costs, telecommunication costs, taxi, and fuel except for diesel oil.
In both of the above mentioned situations, entitlement for deduction of input VAT is subject to conditions stipulated by the Czech VAT Act.
Yes. Reciprocity applies to VAT refund to persons who are not established in the EU and do not have a fixed establishment in the EU. Currently, VAT refund is possible with Switzerland, Norway and Macedonia.
Yes. There are certain items that you cannot recover VAT on. For example:
- exempt supplies: where VAT relates to exempt supplies, there is no right for deduction. Where VAT relates to both taxable and exempt supplies, an apportionment is required. In certain situations, deduction of VAT can be subject to adjustments up to 10 calendar years.
- non-business (including private) activities: where VAT relates to non-business activities, there is no right for deduction. Where VAT relates to business and non-business activities, an apportionment is required.
Alternatively, the VAT payer can decide to deduct also input VAT related to non-business activity and treat subsequent use for non-business purposes as taxable transaction. This alternative approach is not possible in case of fixed assets.
In certain situations, deduction of VAT can be subject to adjustments up to 5 calendar years (or up to 10 calendar years in case of real estate).
- Business entertainment: VAT is not generally recoverable on business entertainment costs which are non-deductible for corporate income tax purposes.
- Business gifts and samples: VAT is not recoverable, except for business gifts used for purposes of economic activity of a VAT payer, if the acquisition cost of such gift, excluding VAT, does not exceed CZK 500 and supply of business samples free of charge for purposes of economic activity. If these conditions are met, extent of recovery of input VAT depends on type of economic activity (taxable/exempt/mixed) for which the gift or business sample is used.
- Employee benefits: VAT is usually not recoverable.
- Entry to Sporting Facilities, Events, Entry to Clubs, etc: VAT is usually not recoverable.
- Tour Operators' Margin Scheme: generally this applies VAT only on the margin and there is no entitlement to claim VAT deductions in respect of received supplies.
- Margin Schemes for Second Hand Goods: Czech VAT legislation requires that the margin should be calculated on an individual unit basis and does not allow VAT recovery.
- Retail Schemes: taxable persons buying goods for the purpose of reselling them in an unaltered condition and who cannot establish precisely their output VAT from their daily records of receipts for sales may ask the local tax authority to determine an individual method of computing their tax liability.
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International Supplies of Goods and Services
Goods supplied to another EU Member State
If a VAT payer supplies goods for consideration to another EU Member State to a customer who is registered for VAT in another EU Member State and the dispatched or transported of goods to another EU Member State is arranged by the VAT payer, the customer or third party authorized by one of them, the supply of goods is zero-rated.
The VAT payer must obtain customer's VAT number and quote it on the invoice. He must be able to prove that goods were supplied to another EU Member State; i.e. the goods physically left the Czech Republic.
Similar rules apply for transfer of own goods to another EU Member State by the VAT payer.
If the VAT payer supplies goods for consideration to another EU Member State to a customer for which acquisition of goods from another EU Member State is not subject to VAT, it will have to charge Czech VAT. If supplies exceed certain threshold for that Member State it may have to register in the Member State under what is known as the Distance Selling Scheme.
Goods supplied to a non-EU country
If a VAT payer exports goods outside of the EU, the supply is generally zero-rated, subject to the following conditions:
- the goods left the territory of the EU
- goods were placed in the customs regime export or another regime allowed by the VAT Act and
- VAT payer is stated as exporter on customs declaration (SAD). In certain circumstances, it might be acceptable that customer is stated as exporter
- dispatch or transport of such goods is arranged by the exporter or by a third party authorized thereto by the exporter. Dispatch or transport can also be arranged by the customer or a third party authorized by the customer on condition that the customer is not established and has no fixed establishment in the Czech Republic.
Export of goods shall not be zero rated if the buyer transports fuel or foodstuffs for the taxpayer’s own needs.
Provision of Services to Taxable Persons
Based on general rule for place of supply of services to taxable persons, the place of supply is where the customer has established its business or where it has a fixed establishment if the service is supplied to that fixed establishment. Exceptions to this rule exist, including:
- services related to immovable property
- services of transport of persons
- services of right of admission to cultural, artistic, sporting, scientific, educational, entertainment or similar events
- restaurant services
- short-term rent of means of transport
In case of services where the place of supply should be outside of the EU in accordance with the above mentioned general rule, the place of supply is shifted to the Czech Republic if the customer is a Czech VAT payer and the service is used and enjoyed in the Czech Republic.
In case of services of short-term or long-term rent of means of transport where the place of supply should be outside of the EU in accordance with applicable rules for place of supply of services, the place of supply is shifted to the Czech Republic if the service is used and enjoyed in the Czech Republic. On the other hand, if the place of supply of such services would be in the Czech Republic in accordance with applicable rules, place of supply is shifted outside of the EU if the service is used and enjoyed outside of the EU.
If a VAT payer established in the Czech Republic supplies services with place of supply outside of the Czech Republic, supply of services shall be reported in the Czech VAT return and in case of services where place of supply is in another EU Member State based on general rule for place of supply of services to taxable persons, also in the EC Sales List. This applies accordingly for Czech fixed establishment if the supply of service is made by the fixed establishment.
In situations where VAT payer supplies services with place of supply outside of the Czech Republic, it is recommendable that it keeps documentation supporting determination of place of supply outside of the Czech Republic (e.g. in case of services under general rule, VAT payer should keep proves that customer is a taxable person which does not have a fixed establishment in the Czech Republic which would be able to use the service supplied).
Provision of Services to Non-Taxable Persons
Based on general rule for place of supply of services to non-taxable persons, place of supply is where the supplier has established its business or where it has a fixed establishment if the service is supplied by that fixed establishment. Numerous exceptions to this rule exist, including:
- all of the exceptions mentioned for taxable persons
- services in the field of culture, education, arts, sports, science, entertainment and similar (covering but not limited to admission to events)
- intermediation services
- transport of goods
- services directly related to transport of goods, services of valuation of movable goods and work on movable goods
- telecommunication services and electronic services supplied by a taxable person established in a non-EU country or through a fixed establishment in a non-EU country to a non-taxable person in the Czech Republic
- certain services supplied to non-taxable persons established in a non-EU country (mainly intellectual services).
In case of services of short-term or long-term rent of means of transport where the place of supply should be outside of the EU in accordance with applicable rules for place of supply of services, the place of supply is shifted to the Czech Republic if the service is used and enjoyed in the Czech Republic. On the other hand, if the place of supply of such services would be in the Czech Republic in accordance with applicable rules, place of supply is shifted outside of the EU if the service is used and enjoyed outside of the EU.
If the VAT payer established in the Czech Republic supplies services with place of supply outside of the Czech Republic, supply of services shall be reported in the Czech VAT return.
In situations where VAT payer supplies services with place of supply outside of the Czech Republic, it is recommendable that it keeps documentation supporting determination of place of supply outside of the Czech Republic.
When goods are imported into the Czech Republic from outside the EU, import VAT and customs duty may be due. If Czech VAT payer acts as importer the import VAT is generally self-assessed via his/her VAT return.
In case of services with place of supply in the Czech Republic purchased by a VAT payer or person identified for VAT, person liable to declare VAT is the customer (VAT payer/person identified for VAT) under the reverse-charge mechanism on condition that the service was supplied by a person not established in the Czech Republic and having no fixed establishment in the Czech Republic or if the Czech fixed establishment exists, it is not involved in the supply of the service. If the supplier is registered for Czech VAT without Czech fixed establishment involved in the supply of a service, this has no implications on use of reverse-charge by the customer.
Under the reverse charge, customer is required to account for VAT on output in its VAT return and it can recover this VAT as input tax in the same VAT return (under standard recovery rules). This means that if customer is able to recover all of its VAT, the reverse-charge is VAT compliance matter only (i.e. no VAT is actually paid to the tax authority).
In case of services with place of supply in the Czech Republic purchased by a taxable persons not established in the Czech Republic or non-taxable persons, supplier shall register for Czech VAT and declare VAT in its Czech VAT return and pay VAT upon supply. The registration obligation of such supplier arises also in case of supply of certain zero-rated services with place of supply in the Czech Republic. However, if the customer is a VAT payer, please refer to first paragraph.
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Invoices
A VAT payer is obliged to issue tax invoice with respect to taxable and zero-rated supplies for taxable persons or legal persons created for other than business purposes and in other specific situations.
Tax invoice in respect of taxable or zero-rated supply performed in the Czech Republic should contain the following data:
- the name and address of the supplier
- the VAT identification number of the supplier
- the name and address of the recipient
- the VAT identification number of the recipient (if it is a Czech VAT payer)
- the sequential number of the invoice
- the extent and the scope of the transaction
- the date the invoice was issued
- the date on which transaction is performed (determined in accordance with VAT Act), or the date payment was received, whichever is earlier; if such date differs from the date of the issuance of the invoice
- the unit price without VAT and discount if it is not included in the unit price
- the taxable amount (VAT base)
- the standard or reduced VAT rate or statement that the supply is zero-rated together with reference to the relevant provision of the Czech VAT Act
- the amount of VAT. This can be rounded to whole Czech crowns in such a way that amounts equal or exceeding 0.50 CZK are rounded to 1 CZK and lower amounts to 0 CZK.
The amount of tax base and VAT must be stated in CZK.
In the case of taxable supplies subject to local reverse-charge (e.g. construction and assembly services, waste and scrap), there are specific invoicing rules.
The above mentioned are invoicing requirements for standard local sale tax invoice. Note that tax invoice can take also other forms such as simplified tax invoice, summary tax invoice, installments calendar, payment calendar etc., if certain conditions are met.
In the case of correction of tax base and VAT after the taxable supply and in the case of correction of VAT amount only (e.g. due to previous incorrect application of VAT rate), corrective tax document (credit/debit note) shall be issued. There are specific invoicing requirements for corrective tax documents.
There are also specific invoicing requirements for certain supplies, including:
- services received from a person registered for VAT in another EU Member State where the place of supply is in the Czech Republic,
- services received from suppliers established in a non-EU country with place of supply in the Czech Republic
- services provided by a Czech VAT payer with place of supply outside of the Czech Republic
- supply of goods to another EU Member State
- acquisition of goods from another EU Member State.
Note that invoices are not required when supplying goods to private individuals or supplying exempt supplies (with no right for input VAT deduction). However, with exception of supplies of new means of transport and distance selling in which case the tax invoice must be issued.
Yes, subject to conditions.
Yes, subject to conditions.
Generally yes. However, amount of tax base and VAT must also be stated in Czech currency on the invoice.
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Transfers of Business
Yes. If a company sells its business as a going concern then VAT is not due.
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Options to Tax
There is an option to tax certain types of transaction in immovable property. A VAT payer may decide whether to apply VAT on the operational lease of plots of land, buildings, flats, and non-residential premises to other Czech VAT payers for the purposes of their economic activities.
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Head Office and Branch transactions
Supply of services
There are no special rules in Czech VAT law. This issue has been, however, discussed with the Czech Ministry of Finance. They confirmed the generally accepted opinion that the provision of services between a head office and its branch (from legal point of view one legal entity) are not subject to VAT in the Czech Republic.
However, implications might differ in case of supplies concerning a VAT group. Should the Czech fixed establishment of an entity established outside of the Czech Republic be part of Czech VAT group, supply of services between Czech VAT group (i.e. including fixed establishment) and entity established outside of the Czech Republic would likely be subject to VAT. This would apply accordingly for supplies of services between an entity established in the Czech Republic which is part of Czech VAT group and foreign fixed establishment of this Czech entity.
Supply of goods
Supply of goods should be treated depending on the physical flow of goods, that is, deemed export/import, deemed intra-Community purchase/supply.
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Bad Debt
Yes. A VAT payer, whose liability to declare and pay VAT arose on effecting his taxable supply against another VAT payer and whose claim that arose latest 6 months before the court adjudicated an insolvency order concerning a person against whom the VAT payer has a claim that has not yet been lapsed, is entitled to make a correction of the VAT on output relating to the value of the determined claim. This is subject to several conditions.
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Anti-Avoidance
Yes. The general anti-avoidance provision is not directly stipulated in the Czech VAT law, but it is defined in the Tax Administration Law which generally covers all taxes.
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Penalty Regime
If the tax authority assesses an additional VAT liability, the penalty of 20 percent from such tax would be assessed. The same penalty would be assessed if the right for input VAT deduction is decreased by the tax authority.
In case of a voluntary disclosure, no penalty would be assessed by the tax authority.
In case there is a default with paying the tax liability, for each day of such default, the interest shall be calculated based on the interest rate of the Czech National Bank increased by 14 percentage points. The interest is assessed in both cases – if the additional tax is assessed by the tax authority based on a tax audit or if the additional tax is assessed based on a voluntary disclosure. Current (June 2012) interest rate of Czech National Bank is 0.75 percent.
If the tax return is not filed or is filed with a delay and such delay is longer than 5 working days, the penalty for late declaration of tax is assessed as follows:
- 0,05 percent of VAT liability for each day of delay; up to 5 percent of VAT liability
- 0,05 percent of VAT credit for each day of delay, up to 5 percent of VAT credit
Maximum amount of the penalty of late declaration of tax is CZK 300,000.
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Tax authorities
How often do tax audits take place?
There are no rules for this. Periodicity of VAT audits varies significantly from one VAT payer to another.
Are there audits done electronically in your country (e-audit)? If so, what system is in use?
No.
Is it possible to apply for formal or informal advance rulings from the (indirect) tax authority?
Binding ruling is possible only for determination whether a concrete taxable supply is subject to reduced or standard VAT rate. Such ruling can be only formal.
Are rulings and decisions issued by the tax authorities publicly available in your country?
Rulings and decisions issued with respect to questions of a specific VAT payer are not publically available.
However, tax authorities sometimes issue general guidelines on VAT treatment in specific situations (e.g. exemptions in the health care). Furthermore, conclusions from public discussions between Chamber of tax advisors and General Tax Directorate are publically available.
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Miscellaneous
Yes, there are numerous specific tax rules, including:
- obligatory local reverse-charge applies to certain supplies, e.g. construction and assembly works, waste and scrap, emission allowances
- customer’s liability for supplier’s unpaid VAT related to the supply made to the customer applies in situations specified by the VAT Act, e.g. consideration for the supply differs significantly from open-market value, consideration is made wholly or partly through bank (non-cash payments) to the account held outside the Czech Republic, the customer knew or should have known that the VAT stated on tax document will intentionally not be paid, the customer knew or should have known that there will be tax evasion from this supply. When customer is in doubt, it is possible to apply a special VAT regime (payment of VAT directly to the supplier’s tax administrator rather than to the supplier), if conditions are met.
- self-supply of fixed assets is subject to VAT in the case of businesses with only partial deduction of VAT.
No.