Czech Republic: Default interest on VAT, user fees waived (COVID-19)

Czech Republic: Default interest on VAT

The Ministry of Finance announced that default interest on certain taxes—including value added tax (VAT) and the road tax—for taxpayers in qualifying industry sectors and certain administrative (user) fees will be waived, as relief measures in response to the coronavirus (COVID-19) pandemic.

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The waiver of default interest only applies for qualifying taxpayers when the “prevailing portion” of their revenue between 1 June 2020 and 30 September 2020 was generated from activities that were limited or restricted by government decree or action between 22 October 2020 and 31 March 2021—for instance, revenue from the operations of restaurants and bars; concerts and musical, theatrical or film shows; and trade fairs and other similar events. There is a condition for the waiver of interest; the underlying tax liability must be paid no later than 16 August 2021. In other words, the tax itself is not waived.

The waiver of administrative or user fees applies for applications filed to waive default interest, to waive interest on deferred tax amount, to request a deferral to tax payment or payment of tax in instalments, or to request a tax debt-free or personal tax account balance confirmation (certain fees are also waived regarding selected applications in the customs area). The user fee waiver applies for administrative actions filed between 1 January 2021 and 16 August 2021.


Read a January 2021 report prepared by the KPMG member firm in the Czech Republic

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