Guidance about VAT Control Statement (ʺVAT Listings e-formʺ)

Selected entities (taxable persons registered for VAT) are obliged to submit the so-called “VAT Control Statement” after 1st January 2016 (according to Articles 101c – 101k of Act no.: 235/2004 Coll., on VAT as amended, hereinafter “the VAT Act”).

The obligation to submit data, from particular tax documents which are already required to be recorded in the tax evidence by the VAT Act, arises. These data will be reported in the VAT Control Statement based on issued and received tax documents (including simplified tax invoices).

Only taxable persons registered for VAT in the Czech Republic (with assigned CZ VAT ID number) have the obligation to submit the VAT Control Statement.

Transactions which shall be declared in the VAT Control Statement:

1. Domestic taxable supplies (CZ) or receipt of advance payment from which liability to declare VAT arises (lines 1, 2 or 25 of the CZ VAT return)
2. Domestic acquisition of goods/services or providing of advance payment:

   • if a VATpayer claimes VAT deduction (lines 40, 41of the CZ VAT return)
   • if liability to declare VAT arises based on Article 108 section 2, 3 or Article 108 section 4a) of the VAT Act (lines 3, 4, 5, 6, 9, 10, 11, 12 and 13 of the CZ VAT return)
3. Special scheme for investment gold:

   • Received Intermediary Service for which VAT is applied according to Article 92 section 5 of the VAT Act
   • Supply of VAT exempt investment gold for which taxable person registered for VAT is entitled to deduct VAT pursuant to Article 92 section 6 b) and c), or
   • Production of investment gold or transformation of gold into investment gold according to Article 92 section 7 of the VAT Act.

(Note: If none of the above mentioned transactions is carried out in the respective period, VAT Control Statement shall not be submitted. Nevertheless the obligation to submit a VAT return is not affected.).

VAT Control Statement is introduced as an effective tool to detect and prevent tax evasion and fraud. Its aim and purpose is to enable the tax authority to obtain information on selected transactions carried out by taxable persons registered for VAT and together with other available information to identify suspicious groups of taxable persons (chains, carousels), which are illegally withdrawing funds from the public budget.

VAT Control Statement is based on records for the purposes of VAT, which taxable persons registered for VAT, are already obliged to keep under Article 100, 100a or 100b  of the VAT Act.

VAT Control Statement does not substitute a VAT return or a Recapitulative Statement for Intra-community supplies. Nevertheless a special declaration of transactions in domestic reverse charge regime (Article 92a and coll. of the VAT Act) is a part of the VAT Control Statement.

Deadline for submission of the VAT Control Statement (CZ taxable persons registered for VAT):

• legal persons or group registration have to submit the VAT Control Statement no later than the 25^th day after the end of each month,
• natural persons have to submit the VAT Control Statement on the same day as their VAT return (no later than the 25^th day after the taxable period: month or quarter, or special taxable period e.g. in insolvency procedure etc.).

First taxable period for which the VAT Control Statement has to be submitted is January 2016 or 1^st quarter 2016.

How to make changes to the VAT Control Statement submitted within the due date (regular):

• Changes within due date for VAT Control Statement submission: all data from previous submission including the corrections shall be declared.
• Changes after due date for VAT Control Statement submission: Corrective VAT Control Statement shall be submitted within 5 working days after detection of irregularities. All data from previous submission including the corrections shall be declared.

The VAT Control Statement has to be submitted electronically. The VAT Control Statement e-form is available on the website of the Financial Administration of the Czech Republic:www.mojedane.cz.

More information about this topic including the structure and .xml format is available (in the Czech language) under the following links:

• VAT Control Statement,
• XML structure for submission of VAT Control Statement,
• Guidelines for filling out the VAT Control Statement e-form and general overview

Possible sanctions (applicable after 1^st January 2016):

If a taxable person registered for VAT does not submit a VAT Control Statement within the due date, the following sanctions will be applied:

1. a) 1 000 CZK, if the VAT Control Statement is submitted after the due date without summons from the Tax Administration,
2. b) 10 000 CZK, if the VAT Control Statement is submitted within the deadline given by the Tax Administration in issued and delivered summons,
3. c) 30 000 CZK, if the Corrective VAT Control Statement is not submitted although summons to submit a Corrective VAT Control Statement were issued and delivered by the Tax Administration,
4. d) 50 000 CZK, if the regular VAT Control Statement is not submitted nor is submitted after summons of the Tax Administration.

Nevertheless, if a taxable person registered for VAT seriously violates or obstructs the administration of VAT by not submitting the VAT Control Statement, the tax administrator can impose a sanction up to 500.000,- CZK depending on individual conditions.

More information of the sanction system and possible remission of a issued sanction – available here: https://www.financnisprava.cz/cs/dane/dane/dan-z-pridane-hodnoty/kontrolni-hlaseni-DPH/sankce