Czech Republic - Consequences for incorrect filing of VAT returns
Incorrect VAT returns can result in serious penalties. Whether due to data errors or fraudulent intent, the consequences can be significant. Here's what you need to know:
1️⃣ Wrong VAT Return Filing Due to Data Error ❌
- In case of an audit, the VAT payable amount may be found to be higher than reported.
- If the amount is higher, the following will apply:
- Penalty of 20% of the calculated tax as determined by the Tax Authority.
- Interest on late payment, based on the current REPO rate set by the Czech National Bank.
- Interest is charged at 0.05% per day for each day of delay if the VAT return is submitted late.
2️⃣ Wrong VAT Return Filing Done with the Purpose of Hiding Transactions or Similar 💼
- If a false VAT declaration is found, the Tax Authorities treat it as a serious case of bad faith or even fraud.
This can lead to heavy financial penalties and potential imprisonment, depending on the amount involved.
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verified - 10.02.2025 - EA
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