VAT Control statement and changes in accounting records in Czechia

We would like to draw your attention to several key areas that need to pay special attention when originating accounting records from January 1, 2016.

  1. Correct VAT number – master data of your business partners must contain correct VAT number. VAT number is newly required also for entrepreneurs who are not yet VAT payers (e.g. free lancers).

 

  1. Aggregated and batch accounting – it is common practice to account for employees expense reports on aggregated basis. In case there is document that has to be reported in VAT control statement separately (purchase value exceeding CZK 10 thousand including VAT), it needs to be accounted for separately to avoid losing information of the invoice details. A similar problem is also when other system processes invoices and batches are accounted for only, e.g. once a day into the accounting system.

 

  1. Date of VAT reporting obligation and Date of taxable supply – date of taxable supply and date of obligation to declare VAT needs to be recorded for received invoices. It means that tax authorities requires you o provide information in which period your supplier is obliged to declare particular invoice for cross-checking purposes. Such date has not been recorded till now.

 

  1. Document number – document number needs to be registered for received tax documents, as accurately as possible, as indicated on the document. Document number of the tax document may differ from the variable symbol used for payment purposes.

 

  1. Self-billing/ invoice issued in regime „vystaveno zákazníkem/issued by customer“ – for correct reporting of documents issued in regime  „vystaveno zákazníkem/ issued by customer“, so called self-billing, i.e. situations when vendor entrusts his client issuing tax documents on behalf of the vendor, it is needed to complete the VAT control statement with information as being indicated on the document issued by the customer.

 

  1. Internal credit memos – incorrect documents and related internal cancellation documents needs to be excluded from the VAT control statement. This is related to invoices and credit notes that were never sent to trading partner.
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