Source mfcr.cz
Summary
- Flood-Affected VAT Payers: The Czech Finance Minister waived fines for VAT payers affected by flooding from September 12, 2024, provided they report the impact by November 25, 2024.
- Deadline Extension: The waiver applies if the deadline for control statement obligations falls between September 12, 2024, and October 31, 2024, with the obligation fulfilled by November 25, 2024.
- Inclusive of Affected Processors: The waiver also covers VAT payers whose control statements were processed by individuals affected by the flooding, under the same reporting and compliance conditions.
Unofficial translation full text
The Minister of Finance has decided, according to § 260(1)(b) of Act No. 280/2009 Coll., the Tax Code, as amended (hereinafter referred to as the “Tax Code”), as follows:
Value-added tax (VAT) payers who have been affected by an extraordinary event—flooding or inundation from September 12, 2024—and VAT payers for whom, as of September 12, 2024, the VAT control statements were being processed by a person affected by the extraordinary event—flooding or inundation, provided that this fact is reported to the relevant tax administrator by November 25, 2024, at the latest, are hereby granted a waiver of the fine for breaching the obligations related to the control statement according to § 101h(1)(a) of Act No. 235/2004 Coll., on Value Added Tax, as amended (hereinafter referred to as the “VAT Act”), if the deadline for fulfilling the obligation related to the control statement falls at least partly within the period from September 12, 2024, to October 31, 2024, and if the obligation is fulfilled by November 25, 2024, at the latest.
Justification: From September 12, 2024, extensive flooding and inundations occurred in the Czech Republic, particularly around waterways. To mitigate the impact of this extraordinary event on VAT payers, the Minister of Finance has decided to use his authority under § 260(1)(b) of the Tax Code to grant a collective waiver of tax accessories to VAT payers affected by the flooding or inundation. Affected VAT payers must report this to the relevant tax administrator by November 25, 2024.
This waiver also applies to VAT payers not directly affected by the extraordinary event, for whom, as of September 12, 2024, the control statement was processed by a person affected by the event. This must be reported to the relevant tax administrator by November 25, 2024, either by the VAT payer or the person processing the control statement for them.
The flooding or inundation may involve direct damage to the property used by the VAT payer or restrictions caused by other consequences of the extraordinary event, significantly hindering the fulfillment of legal obligations in tax administration (such as damage to related infrastructure like electrical or data networks or necessary roadways); the waiver decision does not differentiate between these.
The decision will waive the fine of CZK 1,000 imposed for failing to submit the control statement on time for the second time in a calendar year, provided it is eventually submitted without a prompt.
Since the first failure to submit a control statement in a calendar year does not incur a fine under § 101j of the VAT Act, this decision does not apply to those cases.
The collective waiver decision does not apply to fines under § 101h(1)(b) to (d) of the VAT Act, which can be waived based on an individual request (§ 101k of the VAT Act), nor to fines under § 101h(3) of the VAT Act, which involve administrative discretion.
The fine will be waived for VAT payers if the deadline for fulfilling the obligation related to the control statement falls at least partly within the period from September 12, 2024, to October 31, 2024, and if the obligation is fulfilled by November 25, 2024. The waiver thus also applies to subsequent control statements under these conditions.
According to § 260(2) of the Tax Code, the tax accessory is waived for all tax subjects to whom the reason for the waiver applies.
This decision is effective immediately upon publication in the Financial Bulletin according to § 260(3) and § 101(5) of the Tax Code.
Notice: No appeal can be made against this decision (§ 259(4) of the Tax Code).
Ing. Zbyněk Stanjura, signed Minister of Finance
