Czech electronic VAT ledgers 2016
- 15 June 2015 | Richard Asquith
The Czech Republic is to join Slovakia, Portugal and others by implementing a VAT electronic ledgers regime from January 2016 to report taxable transactions to the tax authorities in near-live time. The government is hoping to raise CZK 10 billion from the measure per annum.
The requirement for VAT-registered businesses to supply full e-ledger reports on their sales comes despite a lack of details on how information will be transferred. But the government is keen to replicate the successes of other EU member states in combating and reducing VAT fraud and the black economies. The requirement is being rolled out sector-by-sector, starting with hotel accommodation and restaurant services.
Initially, the reporting will be limited to sales and corresponding cash receipts. But if successful, could be extended to stocks, fixed assets and purchasing. Much will depend on the ease with which reporting can be done – many businesses will have to invest in special e-cash registers - and the impact on the Czech internet given the quantities of data will be huge.
Czech VAT is currently 21%