Czech Republic: VAT penalties to be waived due to Covid19

The recently published financial bulletin from the Czech Republic includes the decision to waive certain VAT penalties in an attempt to reduce the effects of Covid19 on businesses.

• More specifically penalties for late filing of a VAT return for the period of February 2021 (deadline 25th of March) and additional VAT returns for previous taxable periods that should be filed by the end of March will not be subject to penalties if these returns are filed until 15 of April.
• There will be no penalty for late filing of a VAT control statement in February as long as the statement is filed by 15th of April.
• Penalty for failure to submit corrective VAT control statements for previous months if the time period for submitting them falls (at least in part) between 1 March 2021 and 21 March 2021, and if the VAT control statements are submitted by no later than 15 April 2021
• The VAT late payment interest due for the taxable period of February 2021, if the VAT amount to which the default interest is linked is paid by no later than 15 April 2021.

This penalty waiver does not affect taxable persons subject to government restrictions in response to COVID-19, which were granted late payment interest relief for the monthly periods of September 2020 to March 2021 or the corresponding quarterly periods, provided that payment is made by 16 August 2021.