VAT Control Statement will be a new tool in the fight against VAT frauds
From January 1st 2016, a new obligation for VAT payers will come into effect. VAT control statement is a special tax form that will increase efficiency of current VAT registry data. Swiftness of obtaining the data and prescribed data form are crucial factors for analyses that will provide for uncovering of complicated frauds and prevent unlawful payments of VAT excessive deductions. Data sent to the Financial Administration of the Czech Republic will be maximally secured.
Data stated in VAT control statement by provider will be paired with data stated in VAT control statement by purchaser through the sophisticated software. Thus, the tax administrator will have in the actual time access to accurate information on possible fictitious invoices or undeclared tax.
The VAT control statement will become an essential tool in the fight against major tax frauds. The Financial Administration of the Czech Republic estimates that after the introduction of the VAT control statement the tax revenues will initially increase by CZK 10 billion annually, with a possible additional growth in next years.
The information included in the VAT control statement contains only the essential data – date and subjects of transaction and the total amount of payment. Specification of the subject of the fulfilment shall be stated only in reverse charge procedures, as it is now.
The first period to submit the VAT control statement shall be the 1st quarter 2016, i.e. from 25. 2. 2016 to 25. 4. 2016. The VAT control statement institute was enacted by the Act No. 360/2014 Coll., which amended the Act No. 235/2004 Coll., on Value Added Tax.
