Measures to prevent tax evasion – Unreliable taxpayer

Since 01/10/2014, criterions under which a supplier becomes an “unreliable taxpayer” have been drastically extended [with a consequence that more and more suppliers will be reported in this black list]. Your company will be automatically jointly and severally liable for the payment of all VAT unpaid by its supplier if the latter is listed as “unreliable taxpayer”. In order to avoid this liability, VAT due can be paid directly, under specific conditions, by your company to the Czech VAT authorities. We strongly suggest checking here the status [“unreliable taxpayer or not”] of your CZ supplier before any payment.

[…] Member States may provide that a person other than the person liable for payment of VAT is to be held jointly and severally liable for payment of VAT [art. 206 of the VAT Directive

Introduction of a VAT Control Statement

All companies VAT registered in Czech Republic will have a new obligation to submit by electronic means data in the VAT Control Statement. Sanctions from 1.000 CZK to 50.000 CZK will be applicable in case of failure to do so.

VAT Control Statements – Waiver of penalties
The Czech Authorities have published an appendix to their instruction relating to the applications for a relief of penalties. This appendix covers the penalties charged for the non-filing or late filing of VAT Control Statement. In case a taxable person committed only 2 infringements in 2016 (the reason does not matter), he may ask for a relief of both penalties (under conditions). The same applies to a single penalty in 2017.