Czech steps up anti VAT avoidance measures – unreliable tax payers

Tue 7th Oct 2014

The Czech VAT authorities have broaden the scope of measures implemented in 2013 against tax registered businesses which it considers high risk for VAT fraud or errors. Such companies are publically listed on the tax authorities’ website for public inspection.

The scope of these businesses, known as ‘unreliable VAT payers’ is being extend as follows:

  • Companies which regularly miss their VAT filings deadlines
  • Companies which do not respond to tax correspondence
  • Companies with VAT liabilities in excess of CZK 0.5 million three months or more
  • Companies which are regularly issued with tax assessments
  • Companies using virtual addresses