1. Value Added Tax (VAT) 21st March 2017 doc. JUDr. Radim Boháč, Ph.D.
Department of Financial Law and Financial Science

2. Syllabus of presentation
Indirect Taxes
Value Added Tax
Subjects
Object
Base
Rate
Calculation
Tax period
Budgetary determination
Administration

3. Indirect Taxes 1. Indirect Taxes Universal VAT Selective Excise Taxes
Energy Taxes

4. 2. Value Added Tax
Act no. 235/2004 Coll., on value added tax, as amended
Council directive no. 2006/112/EC, on common system of value added tax
essential elements of VAT
Subjects
Object
Base
Rate
Calculation
Period
Budgetary Determination
administration of VAT

5. 3. Subjects Taxable persons (osoby povinné k dani) Payors (plátci)
mandatory payors
voluntary payors
Persons who paid the tax
consumers
tax burden

6. A. Taxable persons general definition specific definition
any person who independently carries out any economic activity
economic activity
systematic
on continuing basis
specific definition
bodies governed by public law
activities as public authorities

7. B. Payors
voluntary payors
limit of turnover
mandatory payors

8. taxable persons with seat in the Czech republic
B. Payors
mandatory payors
voluntary payors
CZK1,000,000 turnover
taxable persons with seat in the Czech republic

9. B. Payors March April May exceeding the limit 1st May payor 15th April
application of tax registration
application of tax registration
payor from the day following the day of notification of registration decision

10. 4. Object Definition of object Basic terms Principles Example
Tax point
Tax documents
Exemption

11. A. Definition of object supply of goods, supply of services
consideration
taxable person
economic activity
place of taxable supply
acquisition of goods from other EU member state
taxable person or legal non-taxable person
acquisition of new vehicles from other EU member state
non-taxable person
import of goods to Czech Republic

12. B. Basic terms taxable transactions output VAT
input VAT (deduction of VAT)
tax
output VAT > input VAT
excessive tax deduction
input VAT > output VAT

13. Taxable supplies Object of VAT Taxable transactions
Exempt transactions
Taxable transactions

14. C. Principles supplier payor custumer received taxable transaction
realized taxable transaction
supplier
payor
custumer
price incl.VAT
price incl.VAT
input VAT
output VAT
output VAT
Tax Office

15. D. Example 1/4 Farmer A Producer B Tax Office 1.150 CZK fruits 150 CZK

16. D. Example 2/4 Retailer C Producer B Tax Office Tax Office 1.725 CZK
jam
225 CZK
225 CZK
Tax Office
Tax Office

17. D. Example 3/4
2 300 CZK
Retailer C
Consumers
jam
300 CZK
Tax Office

18. D. Example 4/4 Farmer A Producer B Retailer C Tax Office 300 CZK

19. C. Principles – reverse charge
received taxable transaction
realized taxable transaction
supplier
payor
custumer
price wth. VAT
price incl.VAT
output VAT
output VAT
input VAT
Tax Office

20. E. Tax point chargeable event receipt of the payment supply of goods
transfer of real estate
supply of services
acquisition of goods from other EU member state
receipt of the payment

21. F. Tax document duty to issue tax documents types of tax documents
standard
simplified
special

22. Simplified tax document
VAT identification number
business name
scope and object of taxable transaction
total amount including VAT
rate of VAT
date of the chargeable event
number of tax document

23. VAT exemptions i. with entitlement to VAT deduction
G. VAT exemptions
VAT exemptions
i. with entitlement to VAT deduction
ii. without entitlement to VAT deduction

24. i. With entitlement to VAT deduction
received taxable transaction
realized transaction
supplier
payor
custumer
price w/o VAT
price incl.VAT
input VAT
output VAT
Tax Office

25. i. With entitlement to VAT deduction
examples:
supply of goods to other EU member state
export of goods to third countries
supply of services to third countries

26. ii. W/o entitlement to VAT deduction
received taxable transaction
realized transaction
supplier
payor
custumer
price w/o VAT
price incl.VAT
output VAT
Tax Office

27. ii. W/o entitlement to VAT deduction
examples:
insurance and reinsurance transactions
betting, lotteries and other forms of gambling
hospital and medical care
the activities, other than those of a commercial nature, carried out by public radio and television bodies
financial transactions (the granting of credits, deposit and current acounts …)

28. 5. Base
Received Amount (CZK 121)
Tax Base (CZK 100)
VAT (CZK 21)

29. 6. Rate Rates of VAT basic (21 %) first reduced (15 %)
second reduced (10 %)

30. Rates of VAT

31. 7. Calculation 2 methods calculation (payment without VAT)
tax = tax base x tax rate
calculation (payment with VAT)
tax = consideration x coefficient
coefficient = 21/121, 15/115, 10/110

32. 8. Period
calendar month
calendar quarter
conditions

33. 9. Budgetary determination
shared tax
public budgets
state budget
municipality budgets
regions budgets

34. 10. Administration administrator of VAT tax return control statement
financial offices (Organs of Financial Administration)
customs offices (Organs of Customs Administration)
tax return
control statement

35. 10. Administration due date quarantee tax excessive tax deduction
for unpaid tax
guarantors = recipients of taxable supply
conditions

36. e-mail: bohac@prf.cuni.cz
web: tel.:
21st March 2017
doc. JUDr. Radim Boháč, Ph.D.
Department of Financial Law and Financial Science