Changes to VAT approved by the amendment related to the Customs Act amendment

With respect to the amended Customs Act that was published in the Collection of Laws on 29 July 2016, some changes to VAT, which we have informed you about in the past, have become effective. The most important changes are:

• Mitigation of penalties for breach of duties related to the inspection report. New guideline no. D-29 deals in detail with the issue of waiving the penalties for not submitting the inspection report. You can find more information about this topic in KempHoogstad Tax News published in March 2016.
• Applying the reverse charge mechanism in the supply of goods with the place of supply based in the Czech Republic by a person not living in the Czech Republic to a tax payer. The amendment permits cancellation of the registration of respective payers during six months (persons not living in the Czech Republic) in the transitional provisions and under certain conditions.
• Instead of the Financial Office for Prague, the Financial Office for the Moravia-Silesian Region will become the respective financial authority for tax payers who do not have a registered office or place of business in the Czech Republic. The date the jurisdiction of the individual payers changes will be announced by the current Financial Office.
• A tax receipt for VAT purposes relating to the export of goods will now be a standard tax invoice, i.e. basically an invoice for goods, not an export accompanying document. However, the export accompanying document will be considered as evidence of the exit of goods from the EU.
• Adjustment of the provision for the correction of VAT in claims against debtors in insolvency proceedings confirming the original intent of the act to correct claims against debtors in insolvency proceedings for claims older than six months before the court's decision on bankruptcy.