Finanční správa se zaměří na dovozy osvobozené od DPH v jiných státech EU

Tax administration to focus on imports VAT-exempt in other EU countries

The Tax Authorities have published a press release on its website (HERE) informing about the creation of a tool for automated detection of risky transactions in connection with frequent abuse of the conditions of the customs regime 42.

Customs procedure 42 allows an importer to benefit from exemption from import VAT in cases where goods imported from a third country are released for free circulation in one Member State and subsequently transported to another Member State. In such a case, VAT is only payable in the Member State of consumption.

The Tax Authorities recommend that VAT payers pay due attention to reporting under scheme 42. In the event that goods released under customs procedure 42 in another EU Member State are transported to the Czech Republic, VAT is due as on the acquisition of goods from another Member State.

The consequences of not declaring the acquisition of goods depend on whether or not the acquirer is entitled to deduct VAT in full. If VAT is not fully deductible, a late reporting would result in at least late payment interest. If the VAT is fully deductible, there is no risk of additional assessment, but only if the purchaser is in good faith (if there is no tax fraud). Otherwise, the acquirer could lose the right to deduct the tax assessed.

If you have any questions, please contact the authors of this article or the EY client team you are working with.

Authors:

Stanislav Kryl

Jevgenija Bajzíková