VAT control, VAT appeal – closer look at Czech VAT

Tax administration start a VAT inspection because of doubts about the correctness of a VAT return or other suspicions that filings are not in order, for example VAT control statement. The tax administration does not usually bother clients or investigate their affairs without cause. If you want to avoid VAT controls then the best way is to ensure that all filings are correctly completed.

There are three types of VAT controls

  • VAT return control – over all control, goes deeply in the reporting, any period can be checked
  • appeal to prove data of the VAT return – 15 days limit to answer, one period check
  • VAT control statement appeal – 5 days to answer, one period check

When – Why they send appeal

If an incorrect  VAT return is submitted, the tax administration asks for a VAT inspection within a few weeks. They cannot wait longer because it is their duty to process VAT returns and refund VAT when necessary. The tax administration can assess tax payments within three years of the deadline for the original submission of the VAT return.

Tax administration sends an appeal to prove data of the VAT return. Company must provide data electronicaly.

VAT control statement appeal is being sent by Tax administration if there was stated any incorrect information. More about this on our webVAT control statment appeal must be answered electronically.

Where does the VAT return control take place

  • Tax administration office
  • Company seat
  • Tax agent office

What must be provided in case of the VAT control

Records, relevant documents, taxable documents which prove the operations and transactions claimed. Therefore keeping all the documents related to transports, deliveries or sales is necessary. Sometimes business contracts must also be made available.

How does it end

Finally Tax authorities present a report about the outcome of the VAT inspection. This contains information about the specific findings and the result of the inspection. It is possible to comment on this report or make additions to it. A meeting is convened between both parties about the outcome of the VAT control and they sign the final inspection report.

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