Amendment to VAT Act clarifies VAT ledger statement requirements
The Chamber of Deputies of the Czech Republic passed an amendment to the VAT Act in response to the Constitutional Court’s ruling, according to which, within VAT ledger statements, the financial administration may not request from taxpayers data not stipulated, at least in rough terms, by law.
Section 101d of the VAT Act currently in effect states that in their VAT ledger statements taxpayers must include prescribed data necessary for the administration of VAT. However, the content of these data is not further specified. The Constitutional Court found this to be incorrect and issued a judgment in this respect.
In response to the Constitutional Court’s ruling, the chamber of deputies passed an amendment to the VAT Act in its third reading. The amendment changes the section at issue and further clarifies the data that must be included in VAT ledger statements. Since this does not involve any factual modifications of the reported data, taxpayers should not expect any significant changes.
The Constitutional Court set 31 December 2017 as the date by which the law must be changed. If the senate does not approve the proposed changes, the government will probably have to issue a government decree instead.