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Czech VAT compliance changes

  • VAT
  • 22 January 2013 | Richard Asquith

Czech VAT compliance changes

At the end of 2012, a number of changes to the Czech VAT regime were passed into law. These included a rise in the Czech VAT rate to 21%.

Below is a summary of other key changes:

  • Compulsory e-filing of VAT returns and related declarations from 2014 for Czech VAT compliance.
  • VAT registered businesses may use European Central Bank exchange rates for conversations of VAT due from Czech Crowns into Euro’s.
  • Restriction of the ability to reclaim VAT on bad debts to only when the customer is in bankruptcy status
  • All newly VAT registered business will be required to report on a monthly basis
  • The introduction of a ‘unreliable VAT payers’ database, a publically-available list of EU VAT registered businesses which are not up-to-date with VAT settlements
  • Recognition of Czech branches for the purposes of determining is a tax permanent establishment exists when considering the VAT place of supply.
  • New business control requirements for invoices, both hard copies and e-invoices. The helps integrate the latest EU VAT Invoice Directive into Czech Law.

VP Global Indirect Tax
Richard Asquith
VP Global Indirect Tax Richard Asquith
Richard Asquith is VP Global Indirect Tax at Avalara, helping businesses understand their compliance obligations as they grow globally. He is part of the European leadership team which this year won International Tax Review's Tax Technology Firm of the Year. Richard qualified as an accountant with KPMG in the UK, and went on to work in Hungary, Russia and France with EY.