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principal / Czech Republic announces achievements of their fiscal policy
Increasing VAT compliance requirements has a direct positive effect on tax collection. This is the conclusion published by the Czech tax authorities after 12 months of additional controls, returns and measures to reduce tax fraud. The Czech government has published a report providing numbers to this success story. Tax collection increased by an average of CZK 70 billion every year. This increase is not only due to VAT measures but also to other developments in social security and health insurance contributions.
During the last twelve months, he Czech government introduced a new VAT compliance obligations like the Control report, which requires your VAT ledgers to be submitted together with the VAT return and the electronic reporting of revenues for all businesses in the hotel and accommodation industry . Czech Republic also extended the domestic reverse charge mechanism and campaigned in the EU for a temporary and broad extension of domestic reverse charge to almost all supplies.