Value Added Tax

Value added tax is the most important indirect tax of our tax system and the most complicated one as well. This indirect universal tax is one of the basic pillars of the tax system, predominantly thanks to the revenues flowing from it into the public budget. Due to its importance, it is subject to continuous legislative changes by means of which the Czech legislators endeavour to minimize tax avoidance and tax frauds and improve the collection of this tax. At the level of the European Union, its importance is underlined by its high harmonization.

In many business situations (not only in cross-border ones) the VAT system cannot be monitored from the perspective of Czech Act No. 235/2004 Coll., on value added tax, but on the contrary it is necessary to apply the main rules and principles determined by the Council Directive to the common system of value added tax, Implementing Regulation laying down implementing measures of the Directive, and last but not least the development of the judicature of the European Court of Justice.

Payers of valued added tax then need to apply this complex system correctly to their business activities, and any incorrect interpretation of the system or keeping incomplete records that are determined by law may lead to the assessment of back tax, or to refusal of a claim for tax deduction.

If you are interested, we are willing to help you:

  • correctly apply the value added tax system to your specific business activities
  • set a system of keeping records in accordance with law
  • evaluate risks and options of austerity measures emerging from your system applied so far
  • evaluate individual performances both at the level of transactions within the Czech Republic and at the level of transactions within the European Union and third parties.
  • reconcile data from your bookkeeping and VAT records in relation to the assessment of risks that could arise for your company if a tax inspection is ordered
  • register you for value added tax in other member countries of the European Union

If you decide to use our services, we can also offer you our services and help you with the preparation and submission of the following documents:

  • value added tax return and related documents as required by the Tax Office, including keeping obligatory records for tax purposes
  • summary reports monitoring deliveries of goods and provision of services to another member country of the European Union
  • extract from the registration for tax purposes if you provide or receive performance in the reverse charge system
  • Intrastat reports monitoring the movement of goods among members countries of the European Union
  • applications for VAT refund from other member countries
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