Mandatory VAT reports under fire from lawyers

8. 3. 2016 | Source: BusinessInfo.cz

motiv článku - Mandatory VAT reports under fire from lawyers Out of a total of 290,000 registered VAT payers, some 245,000, or 84 percent, have complied with new requirements to submit control registration reports. About four percent of the received reports contained errors, according to deputy finance minister Alena Schillerová. The new reporting requirements mandated submissions be received by the end of February.

"I am delighted to see this revolutionary system for helping to fight tax evasion has launched without any major hiccups," said finance minister Andrej Babiš (ANO) commenting on the numbers. He also reiterated his belief that the requirement is an effective weapon against VAT fraud.

But many tax advisers and lawyers have been bemoaning the changes, saying potential data leaks could compromise the identities of clients as well as staff reimbursement levels, in clear breach of confidentiality agreements. Add to that complaints over self-employers and companies having to fill out new forms.

VAT control registration reports can only be submitted on-line. Meaning anyone submitting a paper version, albeit one filled out entirely properly, risks a fine of CZK 2,000. "All reports are collated at an analytic centre in Pardubice," explains tax adviser Blanka Štarmanová. "Data leaks from this centre are highly unlikely. However, what is risky are electronic communications between businesspersons and their tax advisers. Gaining access to such communications means gaining access to information on all the financial transactions and customers of the affected VAT payer."

Originally published in E15 weekly, economic and business newsmagazine. Author: Pavel Otto

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