New VAT control ledger in Czech Republic
As from the first of January 2016, companies with a VAT registration in the Czech Republic will be obliged to submit a new VAT ledger statement electronically. This control ledger has to be submitted on a monthly basis by the 25th of the following month, the same deadline as the VAT return. The first control report has to be submitted by the 25th of February 2015. Penalties will apply if the report is not submitted within the relevant deadline.
The new report will provide details in respect of information already provided in the VAT return. These details will include invoice numbers, details on suppliers, customers etc. The report will be submitted on a monthly basis within the same deadlines as the VAT return. Basically, all local purchases or sales would have to be included. Furthermore, for most invoices, also information on the counterparty, number of the invoice, VAT amount, VAT base and tax point would have to be included. Local sales or purchases below CZK 10,000 would be subject to less detailed reporting.
Furthermore, also information on acquisition of goods and/or services from foreign entities not established in the Czech Republic with a place of supply in the Czech Republic would have to be reported. Companies should verify whether the data required for this report is available in the existing IT or accounting system as the information required to be reported is much more detailed compared to what is required to be reported on the VAT returns.
The Czech authorities have recently disclosed the XML structure of the ledger enabling companies to adjust their internal systems in order to comply with this new reporting obligation.