1. VAT in Europe
3. VAT in Czech Republic
5. VAT Returns in Czech Republic

VAT Returns in Czech Republic

Frequency of VAT Returns in Czech Republic

The standard frequency of filing of the periodic VAT returns is monthly. However, tax authorities may authorize a quarterly reporting period depending on the annual turnover and other conditions:

Frequency of filing:

• Monthly
  Standard reporting period
• Quarterly
  Agreed by the tax office upon request. The conditions are the following: the turnover for the immediately preceding calendar year did not exceed CZK 10,000,000; the taxpayer is not an unreliable VAT payer; the taxpayer is not a VAT group; and the taxpayer announces the change of tax period to the tax authority until the end of January of the respective calendar year.

Due Date of Czech VAT Returns

The deadline to submit the Czech VAT return is the 25th day of the month following the reporting period.

Find here the tax calendar. 

VAT Payments in Czech Republic

The VAT payment must be made within the same deadline as the VAT return submission, by the 25th day of the following month.

The tax payment methods available are:

• in cash at the cash desk at the local competent Tax Office,
• by postal order,
• by bank transfer (non-cash payment form).

Usually, VAT payments are made via bank transfer. The tax authorities publish the list of bank accounts (and correspondent IBAN details) per tax office. It is important to note that each tax office has a different bank account where the tax payers assigned must made the VAT payments.

The payment reference to include is the taxpayer’s Czech tax number without specifying the CZ country code.

Find here and here more information about paying taxes in Czech Republic.

VAT Refunds in Czech Republic

The excess of input VAT is automatically and immediately refunded to the taxpayer. This is, when a taxable person declares more VAT deductible – e.g., due to purchases-, than VAT collected from sales, the difference is a VAT credit which shall be reimbursed to the taxpayer. The VAT refund shall be received in approximately 30 days, unless the tax authorities initiate a tax audit.

However, when the VAT refund is less than CZK 200 – then we have 2 options: 

• Request it back through this form Záhlaví - Obecná písemnost určená pro podání orgánům Finanční správy ČR - Daňový portál: Elektronické podání (mfcr.cz)
• Use this amount as a credit for the next period due if they are in payable position. No need to include this amount in any box of the VAT return, just discount the amount from the payable position as ask the client to pay the difference.

In any case, to correctly receive the VAT refund, it is important that the tax authorities have the right information about the taxpayer’s bank account. Usually, they will use the bank details submitted at the moment of the VAT registration.

Nil and Corrective VAT Returns in Czech Republic

A nil VAT return needs to be submitted even if there are no transactions to be reported for that period. 

Errors or omissions in a VAT return must be corrected, even if they do not impact on the VAT position for the corresponding period. You will need to submit a corrective return. The corrective VAT return replaces the previous return submitted for the same period in full. This means that the corrective return must include all details that were already correct in the original return as well as the corrected details. Additionally, if there is additional output VAT to be paid as a result of the correction, you should do it.

When submitting a corrective VAT return, penalties and interest may apply.

In any case, the general deadline to make corrections on previous reporting periods is 3 years calculated from the accounting period or tax year which the tax concerns.

VAT Penalties in Czech Republic

Tax authorities impose penalties for the late VAT payment and late submission of a VAT return. A penalty of 0.5% over the VAT liability is calculated per day of delay up to 5% of the VAT liability, or a fixed penalty up to CZK 300,000 per VAT return. In principle, no penalty is charged during the first five days after the deadline.

Czech Tax Authorities Contact

General Financial Directorate
Division: VAT International Cooperation (CZ CLO)
e-mail: vies.dph@fs.mfcr.cz  

Customs Office for the Capital City of Prague

(Data box: k8dny3x)

• E-mail: podatelna510000@cs.mfcr.cz 
• Telephone: 261 334 581 or 261 334 582, or the office of the Customs Office at 261 334 350

 Find here the Directorate with contact details of all tax offices in Czech Republic.