Compulsory control statement submission was introduced in 2016 for all persons registered for VAT as a tool for the Czech tax office to combat fraud and tax evasion. These relate also to all foreign business that have their VAT registration in the Czech Republic.
In addition to the VAT return, each taxable person must also submit a control statement to the Czech tax office if the services defined in the Czech VAT Act were provided in the corresponding tax period (month or quarter). Specifically, these are mainly VAT registered persons who have provided or received a taxable service with a place of performance in the Czech Republic, including received and paid advance payments prior to the provision of the taxable service.
Thus, in addition to the standard domestic transactions, the control Statements also includes, for example, the purchase of goods from another EU country or the receipt of some services from Czech non-residents. Nevertheless there are also transactions that are not included in the control statement, e. g. import VAT.
With its content, the control report is based on the records, which all VAT payers must keep in the Czech Republic.
You can also read more information about the VAT returns and control statements in Slovakia, where similar rules are applicable as in the Czech Republic.
Czech control statement only in the electronic form
The control statement shall be transmitted exclusively in electronic form and by electronic means. This means that the control statement must be provided in a format and structure defined by the Czech tax office and either with an electronic signature or submitted via the data box.
In the control statement, the declared services are automatically assigned according to the VAT ID numbers, invoice numbers, amounts and dates of the taxable supply. If there is a difference between the information given to the service provider and the service recipient, the tax office will require a correction (read more about our services relating to VAT corrections).
For more information about the VAT ID Number in the Czech Republic or Slovakia please see our blog. You can find there also more information about the Czech VAT.
Deadlines and sanctions for control statements
The deadline for submission of the control statement is different for legal and natural persons. While the natural persons have to submit the control report during the tax return period, i.e. per month or quarter, the legal persons (i. e. companies) have to submit the control report at the latest by the 25th day of the following month. This means that the deadline is similar as the deadline for the submission of the VAT returns in the Czech Republic.
A missing or missing control statement is strictly sanctioned.
In the event of late submission of the control report, the financial administration imposes penalties of between CZK 1,000 and CZK 50,000. In the case of late submission of the control statement after the request of the financial administration, the tax penalty amounts to CZK 10,000. Higher penalties of CZK 30,000 and CZK 50,000 shall be imposed on those who fail to submit the control statements despite a request made during the period of replacement.