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.


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

© 2022 KPMG LLP, a Delaware limited liability partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved.

For more detail about the structure of the KPMG global organization please visit

The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organization. KPMG International Limited is a private English company limited by guarantee and does not provide services to clients. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 4366, 1801 K Street NW, Washington, DC 20006.

Connect with us