Finance Ministry will change the conditions for VAT taxpayers

The Finance Ministry wants to change the law with validity since 1st January 2013 which give to the entrepreneurs the possibility to gain information about the so-called unreliable AVT taxpayer. If a company is doing business with such a partner it could be held responsible for his paying the value added tax.

The Czech public showed no understanding for such a tax adjustment and declared the law amendment absurdity of the year 2013. The conditions for a subject to become an unreliable VAT taxpayer were so severe that today there are only 126 juristic persons and corporations with this status.

To the new criteria suggested by the Finance ministry belongs, for example, a lower limit of three-month cumulative back tax (500 000 CZK or 18 000 euros, the limit for 2013 was 10 million CZK or 360 000 euros), impossibility to contact the taxpayer or, since 1^st October 2015, a false statement concerning the address of the company’s head office.

The Finance Ministry hopes that, due to the new criteria, the number of unreliable VAT taxpayer will rise to 3 to 5 thousand.