VAT deadlines and penalties

VAT Return submission deadline is on the 25th of the following month in Czech and Slovakia.

If quarterly submission is being made, the deadline for VAT Return submission is also on the 25th of the following month when the quarter ended. If the 25th is weekend or state holiday, VAT reports can be submitted on the next working day.

What if I do not submit the VAT Return on time

If it is being submitted within five days of the deadline there is no penalty.

If it is submitted later than five days after the deadline, then 500 CZK is charged by the Czech tax authorities.

For submissions after five days of the deadline,  a 0.05% penalty is also charged for every day from the amount of the refundable VAT. If there was a so called VAT loss, 0.01% is charged. The maximum penalty is 5%, or 300.000 CZK.

If the tax is paid late, interest on the delayed payment is charged. Two figures must be considered:

• The interest rate applied by the Czech National Bank (at the beginning of 2017 it was 0.25%, in 2018 it is 0,75%)
• A 14% interest rate

The total combined interest rate is then 14.75%

Interest is not charged if the amount outstanding is lower than 200,- CZK and it is calculated over a maximum of five years.

What if I do not submit a VAT control statement on time

The deadline for submitting a VAT control statement is very simple: it must be submitted for each month and at the latest on the 25th day of the following month if there is any taxable supply which should be reported.

One late submission of a VAT control statement is tolerated. A penalty of 1 000 CZK is charged  if the VAT Control Statement is submitted after the due date and the Czech Tax Administration did not sent a submission reminder request in the meantime.

A penalty of 10 000 CZK is applied if the VAT Control Statement is not submitted within the subsequent deadline given by the tax administration according to the official request delivered.

The penalty mounts to 30 000 CZK if the corrective VAT Control Statement is not submitted although the Czech tax administration officially requested the submission.

If the initial VAT control statement is not submitted and subsequent requests from the tax administration are ignored, a penalty of 50 000 CZK can be charged.

More about VAT control statement.

All these penalties can be waived if there are good reasons why the control statement was not submitted on time.