VAT control statement launches in January 2016
Payers of the value added tax will have a new obligation of stating selected data from tax documents in the VAT control statement and submit it electronically to their tax office from beginning of the new year.
Payers of the value added tax will have a new obligation of stating selected data from tax documents in the VAT control statement and submit it electronically to their tax office from beginning of the new year. These are the data that the VAT payers already have to keep and submit in their recapitulative VAT return. However, in the VAT control statement these data are to be reported separately. Thank to that the Financial Administration of the Czech Republic will be able to evaluate the data in real time and thus detect the VAT fraud yet before the state disburse wrongly claimed excessive deductions.
The VAT control statement is basic tool for revealing of VAT evasions, which currently reach CZK 80 billion per year in the Czech Republic. Most of this amount – CZK 50 to 60 billion – arises from carousel frauds and problems with false invoices.
The VAT control statement is part of the valid Act on VAT since December 2014. Its effect was postponed to 1st January 2016, so that taxpayers had enough time to get prepared. The VAT control statement will be filed only electronically and only in the prescribed format and structure. This is nothing new for many VAT payers trading in a reverse-charge procedure, because they already state the same data in the recapitulative VAT return. First VAT control statements will be submitted for January 2016, up to 25th February 2016 at the latest.
Nearly 400,000 of the total 500,000 VAT payers were informed by the Financial Administration of the Czech Republic via e-mail, SMS and leaflets to their tax data boxes. Other taxpayers were addressed through leaflets distributed at the tax offices.
Find more at http://www.financnisprava.cz/en/taxes/VAT-Control-Statement
