As a VAT payer in the Czech Republic, staying on top of filing deadlines is essential to ensure compliance and avoid penalties. Below is a comprehensive guide to the key deadlines you need to keep in mind when fulfilling your VAT obligations.
VAT Return (Přiznání k DPH)
VAT payers in the Czech Republic are generally required to submit their VAT returns either monthly or quarterly, depending on their reporting schedule. Here are the details:
Monthly VAT Payers:
The VAT return is due by the 25th day of the following month for the reporting period. For example, the return for January must be submitted by February 25th.
Quarterly VAT Payers:
Quarterly VAT returns are due by the 25th day of the month following the end of the quarter. For example, the return for Q1 (January to March) is due by April 25th.
When Can You Become a Quarterly VAT Payer? VAT payers can switch to quarterly reporting if they have been registered for VAT for at least 12 months and their turnover for the previous 12 consecutive months does not exceed CZK 10 million (valid till 2024). This change must be reported to the tax office, and it typically takes effect at the beginning of a calendar quarter.
Changes Effective from 2025: Starting from 2025, the option to choose a quarterly reporting period has been expanded. In accordance with § 99a of the VAT Act (ZDPH), a VAT payer can decide to report quarterly if their domestic turnover for the preceding calendar year does not exceed CZK 15 million (increased from CZK 10 million). The payer must notify the tax authority of this change. If a payer’s domestic turnover in 2024 did not exceed CZK 15 million, they can opt for quarterly reporting starting in 2025, provided all other conditions in § 99a are met. This change should be indicated in the VAT return for the last taxable period of 2024, submitted in January 2025, by including the appropriate reporting period code for the upcoming year.
VAT Control Statement (Kontrolní hlášení)
The VAT Control Statement is a key compliance document that VAT payers must file in addition to their regular VAT return.
For Individuals (Fyzické osoby):
Submit the control statement monthly or quarterly, along with the VAT return.
For Legal Entities (Právnické osoby):
Submit the control statement monthly, even if the VAT return is submitted quarterly.
Note: Ensure that the data in the control statement matches the information in your VAT return to avoid discrepancies.
Recapitulative Statement (Souhrnné hlášení)
If you conduct intra-community transactions within the EU, you are required to file a Recapitulative Statement (EC Sales List).
Monthly Deadline:
The statement is due by the 25th day of the following month for businesses reporting VAT on a monthly basis.
Quarterly Deadline:
Businesses reporting VAT quarterly must submit the statement on a monthly basis, unless they provide only services.
Additional Deadlines for VAT Payments
When submitting your VAT returns, it is also crucial to ensure that any VAT owed is paid to the tax authority by the 25th day of the following month or quarter, depending on your reporting frequency. Late payments may result in penalties or interest charges.
Key Points to Remember:
Electronic Filing:
All VAT-related documents must be submitted electronically via the tax portal of the Financial Administration of the Czech Republic.
Public Holidays and Weekends:
If the deadline falls on a weekend or public holiday, the deadline is extended to the next working day.
Penalties for Late Filing:
Missing deadlines can result in financial penalties. It is advisable to set up reminders or use professional tax advisory services to ensure compliance.
How Can We Help?
Managing VAT obligations can be complex, especially when dealing with tight deadlines and intricate regulations. At Expat-tax.cz, we specialize in assisting businesses and freelancers in the Czech Republic with VAT compliance. Our services include:
Preparing and submitting VAT returns.
Filing VAT Control and Recapitulative Statements.
Advising on VAT payment schedules and optimizing your tax strategy.
Contact us today to ensure your VAT compliance is in safe hands. With our expertise, you can focus on your business while we handle the paperwork.
Need help with VAT compliance? Reach out to us at Expat-tax.cz or book a consultation today!