Czech Republic: Penalty for filing VAT ledger statement for incorrect taxable period struck down

Supreme Administrative Court decision

Supreme Administrative Court decision

The Supreme Administrative Court (SAC) held (case 5 Afs 281/2021-34) that a CZK 50,000 penalty was not legitimately imposed on an entity that incorrectly filed a value added tax (VAT) ledger statement for a previous taxable period.

The SAC concluded that the purpose of such penalty is to deter taxpayers from not complying with their obligation to file a VAT ledger statement, and that in the case in question, the company’s conduct did not meet that criterion.

Read a November 2022 report prepared by the KPMG member firm in the Czech Republic

The KPMG member firm in the Czech Republic also prepared reports about these decisions of the Court of Justice of the European Union (CJEU) addressing VAT-related issues:

  • VAT exemption for transferring credit risk to third party (case C-250/21 - Fund O - 6 October 2022). Read November 2022 report
  • Correction of input VAT in the case of liquidation still required (case C-293/21 – Vittamed - 6 October 2022). Read November 2022 report


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