Guarantee for settling VAT by supplier in real life

The new mechanism of guarantee for settling VAT came into effect on 1 April 2013. It states that the customer who purchases services or goods from a supplier becomes a guarantor for correct VAT payment provided by its supplier under the condition that the customer sends the payment for services or goods to a bank account not included in the Registry of VAT payers. Following this measure, the web pages have been launched showing data concerning firms and the registered bank accounts (Daňový portál click "Registr plátců DPH - anglická verze").

Moreover, the General Financial Directorate issued a notice concerning the guarantee for settling the unpaid VAT (Informace GFŘ, it is in Czech only). It informs that with regard to "the newness of the concerned kind of guarantee and relative difficulty of taking measures" the tax administrators will not require the guarantors to pay the arrears. This recommendation to the tax administrators is temporary and it will remain valid till 30 September 2013.