🇨🇿 What types of fines are there in the Czech Republic?

In this help article, we will inform you about fines in the Czech Republic.

Types of penalties in the Czech Republic:

• Delay fines (German: Verspätungszuschläge, VZ):
  VZ are penalties for the late submission of sales tax returns (German: Umsatzsteuervoranmeldungen, UStVA), control reports (German: Kontrollmeldungen, KM), summary reports (German: Zusammenfassende Meldungen: ZM or so-called EC Sales Lists) and Intrastat reports.

The amount of VZ for reports depends on the time of the late submission of the report:

• As long as the delay is less than 5 days, no penalty payment will be assessed
• If the delay is 5 days or longer, 0.05% of the VAT payment burden will be charged for each day as a penalty payment, maximum 5% of the VAT amount owed penalty
• No fine is charged for late filing of VAT if the penalty is below CZK 1,000 (approx. EUR 40)
• The maximum amount of penalty for late filing of VAT in the Czech Republic is CZK 300,000 (approx. EUR 12,000)

Control report and summary report

If the control report (German: Kontrollmeldung, KM) and the comprehensive report (German: Zusammenfassende Meldung, ZM) are not submitted by the deadline (by the 25th of the following month), the following fines will be imposed, depending on the case:

• CZK 1,000 (approx. EUR 40) if KM and ZM are submitted late without a request from the Czech tax authorities
• CZK 10,000 (approx. EUR 400) if KM and ZM are submitted due to a request from the Czech tax authorities within the subsequently specified period
• CZK 30,000 (approx. EUR 1,200) if KM and ZM are not submitted, although the Czech tax authorities have requested the taxpayer to change, supplement or confirm the control report
• CZK 50,000 (approx. EUR 2,000) if KM and ZM are submitted due to a request from the Czech tax authorities are not submitted within the subsequently specified period

Intrastat declaration

For late submission of the Intrastat declaration, the customs office can impose a fine of up to CZK 1,000,000 (approx. EUR 40,000). The amount of the penalty is determined individually. The reason for this is that for each violation, the customs office takes into account the frequency of violations and the length of the delay. There is no official methodology for this.

Surcharges

Surcharges (German: Säumniszuschläge, SZ) are penalties for the late payment of sales tax payments/sales tax surplus.

The amount of the SZ for UStVA depends on the time of the late payment:

• As long as the delay in payment is less than 4 days, no SZ will be determined
• But if the delay is 4 days and longer, SZ are fixed. These amount to 8.5% pa for SZ that were created after January 1st, 2021
• For SZ that were created before January 1st, 2021, the Czech tax authorities set penalty payments at the repo rate plus 14% pa, which is around 14.5% pa correspond to the payment burden