Accession of the Czech Republic to the EU Milan Tomcek Senior Tax Manager, KPMG Czech Republic mtomi

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Accession of the Czech Republic to the EUMilan
TomícekSenior Tax Manager, KPMG Czech
Republicmtomicek_at_kpmg.cz
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Import of goods tax base

• Base of the tax is formed by customs value tax,
  customs and other fees payable outside the
  importing Member State, as well as those that are
  payable upon the import except for VAT due
• occasional expenses such as commission, expenses
  for package, transport and insurance incurred
  before reaching the first destination in the
  territory of importing Member State.
• The first destination
• Location stated in a consignment note or other
  transport document
• Location of the first reloading in the importing
  Member State

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Import of goods

• Goods will be exempt from import VAT in the state
  to which the goods have been imported, if the
  goods are delivered to another Member State as
  an Intra-Community supply

EC border
Japan FRG CR
goods
goods
Release into free circulation
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Transitory provisions

• EU goods that are at the moment of accession of
  CR to EU in transit, in customs-free warehouse,
  in customs-free zone, in the regime with economic
  impacts or which is temporarily stored
• ?
• Become automatically the goods in the free
  circulation
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• Is not liable to customs
• It is necessary to pay VAT
• Condition proving of preferential origin in EU

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Excise duties

• Tax Warehouses
• Production of selected products possible in tax
  warehouses only
• Basic conditions for operation tax warehouses
• Permission of customs authorities
• Provision of tax
• Selected goods are stored in tax warehouses under
  suspension system

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Withdrawal of goods from tax warehouse

• Release of goods in free tax circulation
• Obligation to pay tax
• Transport within suspension system
• Deferment of obligation to pay tax

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Transport in suspension system

• Conditions
• Provision of tax guarantee
• Administrative Accompanying Documents
• Goods to another tax warehouse
• Goods for authorized recipient
• Export of goods

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Transport of goods

• International transport of goods connected with
  export of goods
• Tax exempt supply
• International transport of goods connected with
  import of goods
• Tax exempt supply if certain conditions are met
• Transport of goods within EU
• Taxable supply
• Different scenarios of taxation

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Intrastat I.

• For filing the declaration it is possible to
  authorize other person
• Report is filed monthly
• The report should include information on
  following goods
• Bought or sold
• Relocated within one subject
• Relocated to be processed or repaired
• Delivery based on services agreement
• Delivered to be installed or reconstructed
• Relocated for long term operational or financial
  leasing
• Goods given free of charge
• There are exemptions

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Intrastat II.

• Reports once per month to customs authority
• Till 12th working day of following month
• Reports can not be filled in with data which are
  not required (there are no relevant columns for
  them)
• Invoiced value is stated in whole CZK rounded up
• Conversion of invoiced value in foreign currency
• Exchange rate of CNB currency market at the date
  of arising the obligation to declare VAT,
  eventually exemption of VAT

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Intrastat III.

• Entities obliged to declare Intrastat reports at
  the day of EU accession will be specified by CSÚ
• These entities will be informed by customs
  authorities
• For other entities first monitored period
• Calendar month, when the assimilation threshold
  is exceeded
• Termination of presenting obligation
• Submission of statements for December in a
  calendar year, when the assimilation threshold
  was not exceeded

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Intrastat IV.

• Single or occasional dispatch or receiving of
  goods
• Report for given calendar month only
• Then, no negative statements are needed to be
  declared
• Under the condition that no receiving or dispatch
  of goods is done during next 6 month time period
• Receiving or dispatch of goods during monitored
  time period
• Obligation of presenting of standard reports
  arises

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Intrastat V.

• Consignments of dispatched or received goods
  amounting up to 6 000 CZK
• Summary records under united code 99500000
• Dispatch of these consignments
• Information about country of receiving and
  invoiced amount only
• Receiving of these consignments
• Information about country of dispatch and
  invoiced amount only

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Intrastat VI.

• Correction of wrong data before submission of
  reports to customs authorities (CA)
• Strike out a whole row and fill in a whole new
  row
• Correction of reports submitted to CA
• New report marked with a word CORRECTION
• Obligation to make a correction
• Change of stated amount of goods over more than
  CZK 100 000 or stated quantity of goods over
  more than 20
• Submission of the corrected reports at the very
  latest by 15th working day of June following year