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Floods - Penalty Waiver for VAT ledger

On September 26, 2024, the Ministry of Finance issued the Financial Bulletin, which published a decision on the waiver of tax penalties due to an extraordinary event. Detailed information can be found HERE. The purpose of this decision is to relieve taxpayers affected by the recent floods. A penalty of CZK 1,000 for late submission of the VAT ledger is waived, ie., in the case the taxpayer submits this report without being notified by a tax administrator and, at the same time, the late filing represents second omission within a calendar year.

To benefit from this decision, the following conditions must be met:

• The deadline for submitting the VAT ledger falls within the period from September 12 to October 31, 2024.
• The VAT payers must notify the respective tax administrator by November 25, 2024, that they were affected by the extraordinary event. A simple form available HERE can be used for notification.
• The VAT report must be submitted no later than November 25, 2024.
• The waiver can also be applied to corrective VAT ledgers whose submission deadline falls within the aforementioned interval.

The waiver applies to VAT payers who were directly affected by the floods or those whose VAT reports are processed by a person affected by this extraordinary event, such as an external accountant.

For other penalties related to the violation of the obligation associated with the VAT ledgers, the process must be handled individually and request a waiver according to the special provisions of the VAT Act. However, the Czech Ministry of Finance states that in the affected areas, tax administrators will not issue calls for the submission of VAT ledgers. Assuming that the VAT payers submit (corrective) VAT ledgers by November 25, these penalties should therefore not be prescribed.

If this situation applies to you or your company, do not hesitate to contact the authors of the article or the EY advisory team you work with.

Authors:

Ivana Krylová

Ivana Svobodová