The Czech VAT changes that have been effective since 1 January 2013 also include new rules that result in more administration for businesses. As an anti-avoidance measure the new rules require businesses to check their suppliers’ bank account numbers.
If the VAT payment is not received from the account that was communicated to the tax authorities and customers made payments to a supplier account that is not known by the tax administration, the authorities can demand VAT payment from the customer. To avoid any negative consequences it is therefore key that you match the recipients’ bank account number with database of the authorities.
The database where the account numbers should be checked will be available on the website of the Czech authorities from 1 April 2013. (For those taxpayers that do not confirm their account numbers to the authorities by 28 February 2013, the bank account that was used for the initial VAT registration will be entered in the database.)
The tax administration will also publish a “Black List” of the unreliable VAT payers by the end of February. In the event that your supplier is on the list, it is possible to make the VAT payment directly to the tax authorities (instead of the supplier), but it is highly recommended to agree this with your supplier. In the event that VAT is paid by the customer and later also by the supplier, the excess payment will be credited to the supplier’s VAT account. The customer will not be able to reclaim this amount from the authorities, only from the supplier as a price adjustment.