VAT periodic reporting

Requirement

Since January 1, 2016, in the Czech Republic, a detailed control statement in XML format must be provided in addition to the VAT report. This statement must be in accordance with Article 101c and following of the Act no. 235/2004 Coll., on VAT as amended (’VAT Act’). The XML file must be transferred to the tax authority on this page: https://mfwwwit-1.mfcr.cz/adistc/adis/idpr_epo/epo2/uvod/vstup_expert.faces.

Frequency of the new report is either monthly or quarterly until 25th of the following month, depending on the size of the company.

The standard VAT rate is 21%. The standard VAT rate generally applies for all goods and services for which no exemption, 0% or one of the reduced VAT rates is foreseen.

The reduced VAT rate is 12%. This reduced rate was consolidated in January 2024, and prior to that date, there were two reduced rate applicable of 10% and 15%. The 12% reduced rate applies to certain food products, passenger air transport, medical and social care, restaurant and catering services, water distribution, admission to cultural and sporting events, and hotel accommodation, among others.

M3 solution

The calculation, accounting, reporting, and reconciliation of value added tax is supported by generic functionality in M3. This process is supported through VAT report templates. These templates are user defined and used in VAT proposals, reconciliation, and report functions. Reports and electronic messages are based on these templates.

For this country version, this Financial Business Message (FBM) is used M3FBM_CZ_Out_VAT_Report_Control_Statement_XML_2024. This message is developed for the creation of the XML message for control statements. All invoices and credit notes in one period or month are listed and grouped by tax code and special criteria. The dphkh1_epo2 format is used for the message. This message is provided in addition to the VAT report to be uploaded to the Czech Tax Portal Daňový portál.

The M3FBM_CZ_Out_VAT_Report_Control_Statement_XML_2024 supersedes the M3FBM_CZ_Out_VAT_Report_Control_Statement_XML_2019.

The new FBM, applicable since 2024, now uses 'Tax Reporting. Open Report Fields' (TXS035) to define the allowable tax rates, instead of having them hard-coded in the FBM mapping. This includes Additional fields 611 for the standard rate, and 612, 613, and 614 for the reduced rates. This change was made to allow for future VAT rate adjustments as a user setting, rather than having a hard-coded VAT percentage in the mapping.

For the selection of the relevant invoices, a specific VAT report template is required in M3, with fixed ranges of line IDs for each report section.

An option enables to insert special indications for a corrective report in due time and for a corrective report outside the ordinary reporting time.

Optionally, the invoice receipt date is specified during the entry of the supplier invoice and handled in the report.

See the Infor M3 Cloud Core Administration Guide for the ION configuration of this message.