The number of companies deamed unreliably to pay VAT increased by seven percent to 23,095 at the end of September this year. These are 5,160 unreliable VAT payers and 17,935 unreliable persons. This is according to statistics from the consulting company Dun & Bradstreet. According to previous statistics, there are approximately 521,000 VAT payers in the Czech Republic.
“The register of unreliable VAT payers and unreliable persons is the slowest to fill this year since 2015. In the third quarter of this year, the increase in entities that unreliable pay VAT or seriously violate tax administration obligations was the second lowest since the end of 2014. 306 more and we recorded the lowest number ever this year in the first quarter, a total of 263,” said Dun & Bradstreet analyst Petra Štěpánová.
A company that does not have tax documents in order and the office will charge a tax of at least CZK 500,000, as well as a company suspected of participating in fraud, is considered unreliable. A company that repeatedly fails to meet the deadlines for mandatory submissions may also be identified as an unreliable payer. Based on the decision of the tax administrator, a natural or legal person can become an unreliable person. These are either entities that are not VAT payers and seriously violate their obligations related to tax administration, or entities that ceased to be VAT payers at the moment when they were listed in the register of unreliable VAT payers.
At the same time, the most unreliable payers are among limited liability companies. Of the roughly half a million companies registered in the Czech Republic, of which less than half pay VAT, 17,989 of them are included in the list of problem companies. This is 78 percent of the total number of unreliable subjects. The second largest group consists of self-employed, a total of 2554 out of about two million.
Source: Dun & Bradstreet and CTK
