Electronic communication with the finance office

Czech Republic: Electronic communication with the finance office is mandatory for taxpayers who have access to a databox

Taxpayers who have their own databox (or whose representative before the authorities has a databox) or who must have their financial statements audited by a chartered accountant are required to conduct all communication with the tax authorities (i.e., the finance office) through electronic channels, whether it concerns the registration for specific types of taxes, the announcement of changes that are to be made to previously registered data, regular or supplementary tax returns, or annexes to the same. Failure to comply with the mandatory electronic form carries a fine of up to CZK 2000 which may be imposed without prior warning. While the finance office is not strictly required by the letter of the law to impose the fine, the finance authorities have indicated that the full amount will be collected for each instance of a non-compliant filing. For natural persons with a turnover of up to CZK 6 million, the requirement of electronic communication with the finance office has been postponed until a grace period expires on 1 January 2016 (unless such natural persons are already required to make certain filings – reverse charge reporting, recapitulative statements – electronically under the VAT Act). As of 1 January 2016, electronic communication is obligatory for all legal entities and private individuals without exemption.

However, similar plans which would have made electronic communication mandatory also in the case of the social security administration have been shelved. This means that paper filings are still permitted e.g. for employer’s health/social insurance contribution records, sick leave reports, and statements of income from self-employed entrepreneurs.

Source: Income Tax Act (Act No. 586/1992 Coll.) General Fiscal Code (Act No. 280/2009 Coll.)

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