ESL in the Czech Republic

Engaging in trade with VAT-registered businesses in other EU countries often necessitates the creation of EC (European Community) Sales Lists. These lists document all sales and provide VAT authorities with the necessary information to verify accurate VAT accounting by businesses operating across the EU. Differing from Intrastat reports, which solely track the movement of goods, EC Sales Lists encompass both the supply of goods and services throughout the EU.

For tax-exempt intra-community deliveries of goods and for intra-community services where the tax is to be paid by the recipient, every taxable entity is required to submit an EC Sales List.

These recapitulative statements (ESL) must be compiled and submitted to the local VAT authorities by the 25th of the month following the reporting period’s conclusion. A quarterly submission is possible only if the taxable payer is involved exclusively in intra-Community service provision and their VAT returns are also filed quarterly.

Cumulative Statement

 The VAT Control Statement is a mandatory report for all Czech VAT-registered taxpayers, including foreign entities registered for VAT in the Czech Republic. This requirement was introduced as a means to detect and prevent tax fraud and evasion. It aims to provide the tax authority with additional details (like the customer’s VAT number and the supply date) on specific transactions conducted by VAT-registered entities and to pinpoint suspicious groupings of such entities.

The VAT Control Statement is not a substitute for the VAT Return or Recapitulative Statements. These documents must all be submitted concurrently to the tax authorities. The filing deadline for the VAT Control Statement coincides with the VAT return deadline. For those settling VAT on a monthly basis, the submission is due on the 25th day after the end of the reporting period.

Non-adherence to the rules regarding the VAT Control Statement can lead to substantial penalties. Fines range from CZK 1,000 to CZK 50,000. In more severe cases, such as failure to submit the VAT Control Statement following a request from the tax authorities, penalties can escalate to as much as CZK 500,000. Additionally, penalties are also applicable for incorrect reporting.

Last Updated: 06/12/2023

Disclaimer

The information provided by Global VAT Compliance B.V. on this webpage is intended for general informational purposes only. Global VAT Compliance B.V. is not responsible for the accuracy of the information on these pages, and cannot be held liable for claims or losses deriving from the use of this information. If you wish to receive VAT related information please contact our experts at support@gvc.tax