New developments in VAT – General Financial Directorate’s notification regarding the new control report introduced with effect from 2016
The General Financial Directorate (“GFD”) published information about the VAT control report that is to be filed by taxpayers with the tax authority from January 2016. The information defines persons that must file the report, the mandatory form of the report, information that must be provided to the tax authority in the report and the period for which the report is filed. All this is to prepare VAT payers in advance for a new important administrative and notification duty, which should be, at least to some extent, taken into account from January 2016. The new obligation is outlined below.
Control report and other documents filed with the tax authorityThe control report does not replace the VAT return or the summary report. Nevertheless, it replaces at least the extract from VAT records (declaring domestic reverse-charge supplies). This extract will no longer be required as all relevant information will be presented in the control report.
Who files control reportsControl reports must be filed by VAT payers (Czech and foreign entities and the group defined in Section 5a of the VAT Act) if, in the relevant period:
- they effect a taxable supply with the place of supply in the Czech Republic, or receive consideration before effecting the supply;
- they receive a taxable supply with the place of supply in the Czech Republic, or provide consideration before effecting the supply; or
- they receive supplies which give rise to their obligation to declare VAT under Section 108 (1) (b) and (c) of the VAT Act (such as goods purchased from another EU Member State, a service provided and goods supplied including installation/assembly by a person not established in the Czech Republic);
- specific transactions are effected under special arrangements for investment gold.