VAT OBLIGATIONS IN CZECH REPUBLIC
How is the tax period determined in Czech Republic?
Your company has to report its VAT position by filing periodical VAT returns on a monthly basis (standard tax period). Quarterly reporting period may be allowed provided the turnover in the previous calendar year did not exceed CZK 10 million. This option is however not possible for the first two years after registering for VAT.
In addition, taxable persons registered for VAT are obliged to submit a so-called “VAT Control Statement”. That obligation was introduced as a tool to detect and prevent tax evasion and fraud. Its aim is to enable the tax authority to obtain additional information (e.g. VAT number of the customer and date of supply) on selected transactions carried out by taxable persons registered for VAT and identify suspicious groups of taxable persons (e.g. carousels). VAT Control Statement does not substitute a VAT return or a Recapitulative Statement for Intra-community supplies. It must be submitted on a monthly basis (even if the taxpayer is allowed to file its VAT return on a quarterly basis).
When should periodical VAT return be filed?
Periodical VAT returns must be filed by electronic means to Czech VAT authorities before the 25th day of the month (25 of N+1) following the tax period (month/quarter) to which it relates.
The VAT Control Statement must be submitted by the 25th day after the end of each month (25 of N+1).
The tax period shall be set by each Member State at one month, two months or three months. Member States may, however, set different tax periods provided those ones do not exceed one year. The VAT return shall be submitted by a deadline to be determined by Member States. That deadline may not be more than two months after the end of each tax period.
Is this requirement laid down in the country and what is the filing deadline?
Your company is not required to file any summarizing annual VAT return in Czech Republic.
Member State may require taxable persons to submit a return in respect to all transactions carried out in the preceding year. That return shall provide all the information necessary for any adjustments.
Are quarterly filings allowed by the country and what is the filing deadline?
The recapitulative statement [ESL] must be drawn up for each calendar month and must be submitted to local VAT authorities by the 25th of the month after the end of the reporting period [month]. Filing the statement on a quarterly basis is not possible.
The recapitulative statement shall be drawn up for each calendar month. However, Member States, in accordance with the conditions and limits which they may lay down, may allow taxable persons to submit the recapitulative statement on each calendar quarter where the total quarterly amount of intra-EU supplies of goods does not exceed either in respect of the quarter concerned or of any of the previous four quarters the sum of € 50.000 or its equivalent in national currency. The recapitulative statement shall be submitted within a period not exceeding one month.
What is the payment deadline?
The VAT due should be paid by the filing deadline for the VAT return [25th of the month following the tax period].
Are interim payments required?
Interim payments are not required in Czech Republic.
Any taxable person liable for the payment of the VAT must pay the net amount of the VAT when submitting the VAT return. Member States may, however, set a different date for payment of that amount. Member States may require interim payment to be made.
Is any VAT credit automatically carried forward or refunded?
There is no automatic carry-forward mechanism in Czech Republic. Refund is done immediately [generally within one month from the deadline for submission of the VAT return] provided that the amount exceeds CZK 100.
Where, for a given tax period, the amount of deductions exceeds the amount of VAT due, the Member States may, in accordance with conditions which they shall determine, either make a refund or carry the excess forward to the following period. However, Member States may refuse to refund or carry forward if the amount of excess is insignificant.