Recently the General Tax Directorate has released the category of “unreliable VAT payers” which was effective from 1 October 2014. It was extended to contain intentionally inaccessible VAT payers, VAT payers who fail to complete the deadlines frequently for regular filings, VAT payers whose VAT debt crosses CZK 500,000 during more than 3 months period; and whose tax due are constantly assessed by the tax authorities. The extension of the categories of “unreliable VAT payers” is already incorporated in Government’s commitment to strengthen the battle against tax fraud and evasion. VAT payers were recognized as “unreliable” as of 3 October 2014.
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