Amendment to the Value Added Tax Act valid from 1 January 2013 – guarantee of tax payment

Amendment to Act No. 502/2012 Coll. introduced the duty of persons liable to tax to specify the numbers of all bank accounts used by them for economic activities to the tax administrator not later than by 28 February 2013 and choose those that would be published by the tax administrator. This duty is stipulated by Section 96 of Act No. 235/2004 Coll., on value added tax, as amended (hereinafter the “VAT Act”).

The tax administrator shall publish these data from 1 April 2013 in the “Register of VAT Payers” in a manner allowing for remote access in the following form:

tax identification number of the tax payer or identified person;
business name or name and surname, or designation, and appendix to the name and surname or designation;
registered office of the tax payer or identified person; and
number of the account identified in the application for the tax payer’s registration as the account to be published or a note that no such account number has been specified.

From 1 April 2013, tax payers (recipients of tax supplies – customers) will thus be able to check the published bank accounts of the providers of the supplies (suppliers) by means of remote access.

Section 109 of the VAT Act further stipulates that if the payer (customer) accepts a supply and pays for the supply to the supplier fully or partly by means of a cashless transfer to an account other than the supplier’s account published in the Register of VAT payers, the payer guarantees payment of tax on the supply (is liable for unpaid tax).

Section 106a of the VAT Act also newly defines the term “unreliable payer” as a tax payer who substantially violates his duties related to tax administration. According to Section 109 (3) of the VAT Act, the recipient guarantees payment of tax on the supply if the supplier is registered at the time of the payment as an unreliable payer. It must be noted in this respect that if a supply is accepted from an unreliable payer, the customer is not released from the guarantee for payment of tax by paying into the published supplier’s account.

It follows from the above that it is in the interest of each customer to check whether the supplier specified a registered bank account in the given invoice. At the same time, for reasons of credibility, it is in the interest of the supplier to always state this information on the tax document.