Czech Republic VAT returns
Any company registered with the Czech tax authorities (see our Czech VAT registration briefing) as a non-resident VAT trader must report taxable transactions through periodic filings, known as returns.
How often are Czech VAT returns required?
The standard VAT reporting period in the Czech Republic is one month. A business with a turnover of less than CZK 10,000,000 in the preceding year may opt to file quarterly returns once it has been registered for three years. There is no requirement for an annual return.
What Czech VAT can be deducted?
In addition to declaring sales or output VAT in the Czech return, companies can offset this with the corresponding input or purchase VAT. There are some exceptions, including:
- Taxi costs
- Telephone costs
- Fuel for transportation
- Restaurant and catering costs
- Accommodation costs
- Travel costs
What are the deadlines for filing Czech VAT returns?
Any Czech monthly or quarterly VAT filing is due on the 25th day of the month following the tax return period. Any VAT due should reach the Czech tax authorities’ bank account by this deadline.
|Type of return||Frequency||Filing deadline||Document||Format|
|VAT return||Monthly||25th day of the following calendar month||Form 25401|
|Quarterly||25th day of the following calendar month||Form 25401||XML|
|EC listing||Monthly||25th day of the following calendar month||5521|
|Quarterly||25th day of the following calendar month||5521||XML|
|Intrastat||Monthly||10th day working if submitted in paper form and 12th working day if submitted in electronic form.||Intrastat Declaration||XML|
|Quarterly||10th day working if submitted in paper form and 12th working day if submitted in electronic form.||Intrastat Declaration||XML|
|Annual||10th day working if submitted in paper form and 12th working day if submitted in electronic form.||Intrastat Declaration||XML|
|VAT Books||Monthly||25th day of the following calendar month||DPHKH1||XML|
|Quarterly||25th day of the following calendar month||DPHKH1||XML|
Where are Czech VAT returns filed?
Czech VAT returns must be submitted electronically. The only exception is for individuals (sole proprietors) whose turnover in the preceding calendar year was less than CZK 6,000,000. The form should be submitted via the website of the Financial Administration of the Czech Republic at https://adisepo.mfcr.cz.
Czech VAT penalties
If there are misdeclarations or late fillings of Czech VAT returns, foreign companies may be subject to penalties. Late filings or failure to register for VAT will result in penalties calculated according to potential lost revenue with a maximum penalty of CZK300,000. Inaccurate or incorrect filings will trigger penalties of 20% of the additional tax liability. In addition, interest is charged on late payment of VAT at the repurchase rate set by the Czech National Bank plus 14%. Interest can only be charged for five years.
There is a three year statute of limitations for Czech VAT, There are exceptions to this, for example, in the case of businesses which commit repeated tax offences the stature of limitations may be extended to ten years.
How are Czech VAT credits recovered?
If there is a surplus of VAT inputs over outputs (more VAT incurred than charged), then a Czech VAT credit arises. In theory, this is due back to the VAT registered business. For EU registered businesses, a refund application for Czech VAT must be submitted electronically through the website of the country in which the claimant is established. Non-EU registered businesses should submit a refund form directly to the Czech tax authorities. However, requesting a VAT refund may trigger a VAT audit by the tax authorities.
Need help with your Czech VAT compliance?
Researching Czech VAT legislation is the first step to understanding your VAT compliance needs. Avalara has a range of solutions that can help your business depending on where and how you trade.
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