On 11 September 2013 the General Financial Directorate published further information related to the institute of guarantee of the recipient (customer) of taxable supply for unpaid VAT by the supplier according to the VAT Act, art. 109, section 2 lit. c). As we informed you already in April 2013, the recipient of taxable supply becomes a guarantor for VAT unpaid by the provider of the supply provided that the payment is wholly or partly made to different bank account (held in the Czech Republic) than the one published by the Czech Financial Administration.
Based on the new information provided by the General Financial Directorate, the practical use of this provision is postponed from the original deadline of 1 October 2013 to 1 January 2014. In case of tax arrear creation the Financial Authorities will thus require guarantee for the tax payment starting from 1 January 2014.