24th November 2014

New obligation for the entrepreneurs

New obligation for the entrepreneurs is to be introduced as of the 1st January 2016 as all companies that are obliged to pay VAT will have to create and send monthly control reports to their respective tax administration authorities. Should the companies fail to do so the automatic penalty would be charged in the amount ranging from 1 000 to 50 000 CZK. Reports would be submitted on the base of monthly evidence that the companies are already obliged to have and then it would be sent through the data mailbox signed with the digital signature. This move by the Czech legislation follows similar measure introduced in the Slovakia in 2013 and is aimed at providing greater transparency in tax reporting and battling so called “white horse companies” that have little to none activity and often serve as the disguise of fraud and public procurement funds misuse. That is also why no minimal limit for the reporting except of minimal turnover of 1 million CZK per year – that is already in place – is to be set.

For more click here.

Members of the American Chamber of Commerce in the Czech Republic