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Czech Republic: VAT amendments effective 2019; pending questions and issues

Czech Republic: VAT amendments effective 2019

Amendments to the value added tax (VAT) law in the Czech Republic are scheduled to be effective in 2019.


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There are certain questions that arise under the VAT amendments concerning limited liability company (LLC) statutory representatives, and the timing for declaring VAT. Specifically:

  • Are statutory representatives of LLCs subject to VAT? For statutory representatives of LLCs, it will be necessary to determine whether and to what extent elements of subordination are present. If the LLC’s statutory representatives are determined to be taxable persons, they need to be registered for VAT purposes, and compliant from a VAT perspective.
  • When to declare VAT? An amendment clarifies when preparing and filing an additional VAT return is required and when it is possible to declare “late” VAT in a “regular” tax return. There are also measures concerning interest on a late payment of VAT (late-payment interest, if any, would only apply on the difference between output VAT and the related deduction of input VAT (that is, relevant for a partial entitlement to VAT deduction)).


Read an August 2018 report prepared by the KPMG member firm in the Czech Republic

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