Following the State Security Council decision to severely limit free movement in the Czech Republic (from midnight March 16 to 6am March 24), the ministry of finance has published liberation tax package in connection with the state of emergency in the Czech Republic. In the VAT area, the following measures will apply:
- waiver of sanction for late submission of the VAT return and sanction for non-submission of the control statement in all cases where the VAT payer individually requests the waiver and proves the reasons in any way related to coronavirus. Typically, this may be an illness or quarantine of accountants or other key employees whose absence made it impossible to fulfill VAT obligations,
- general waiver of the second penalty for failure to submit a control report of CZK 1,000 in 2020 without having to prove the reasons related to coronavirus. Today, the first fine of CZK 1,000 is automatically waived by law,
- the General Financial Directorate will modify the guidelines to allow for individual waivers of sanctions in relation to control statement, without time limit, if the VAT payer proves the reasons in any way related to coronavirus,
- flat-rate waiver of an administrative fee of CZK 400 for filing an individual application for deferral of payment or partial payment of VAT liability, if the VAT payer proves the reasons in any way related to coronavirus, until 31 July 2020.
Until now, the ministry of finance has not extended deadline for submission of the VAT reports or for payment of VAT liability.
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