Recapitulative Statements in year 2010 Amendment to an Act regulating VAT, valid from 1st January 2010, is wide. Changes which the taxpayer must be prepared for in advance are also related to regulations for recapitulative statements.

1. What is filled in Recapitulative Statement

The obligation to fill in the Recapitulative Statement is extended for providing services, until the end of year 2009 the tax-payer used to fill in only when delivered goods: § 102 part.1

The tax-payer is obliged to file the Recapitulative Statement if

• he has delivered goods to other member state to the person registered for tax in other member state,
• has moved business property to other member state,
• has delivred goods to a purchaser at simplified procedure at three-sided business according to § 17, if the tax-payer is the middle person in this business, or
• has provided services with place of performance in other member state according to § 9 part. 1, except for services which are free of tax, if the receiver of service is obliged to pay tax.

From the amended § 102 part. 1 about VAT is obvious that except for the obligation to file the Recapitulate Statement at the delivery of goods to other member state, delivery of goods and referring to three-sided business which is already a subject of performance, the tax-payer is newly obliged to file the Recapitulative Statement at providing services with place of performance in other member state. This obligation does not refer to services which are free of tax. Services which have a place of performance in a state of receiver are always taxed by the receiver (reverse charge) if they are not free of tax according to amended Article 196.

Examples:

• Tax-payer has provided service – work on movable asset – to person liable for tax in Germany. The place of performance is according to basic regulation (§ 9) in Germany. This service will be filled in provider’s Recapitulative Statement and receiver’s tax return handed in Germany should correspond with it.
• Tax-payer has provided service – providing a loan – to person liable for tax in Germany. The service is free of tax according to Art. 135 part. 1 Subpart. b). Therefore, it will not be filled in the statement.
• Tax-payer has provided service – property roof repair – on property located in other member state to a person registered for tax. According to Article regulating VAT § 10 is the place of performance a state where the property is located. According to local regulations the receiver is responsible to pay the tax. Thought, the tax-payer does not fill this service in the Recapitulative Statement as the place of performance is not given by the basic regulation (§ 9, part.1 – Article regulating VAT).

2. How to file in the Recapitulative Statement

The biggest news is that the tax-payer newly files the Recapitulative Statement electronically either via data box or via email which must contain an electronic signature and in a form of data message. At the end a change to the text was made by the proposed amendment held to Chamber of Deputies so the proposed text according to which a pdf file could be submitted which for the tax administrator meant to rewrite all entered data, it could lead to that the date for disclosure of information to other member states (30 days) would be at risk. The final formulation which was agreed on by the Chamber of Deputies gives to the tax-payer obligation to only file the Recapitulative Statement in form of data message. § 102 part. 2

Recapitulative Statement is only filed in a form of data message which obtains electronic signature or which is sent via data box. It always has to have a form, structure and entered data which are required by the tax administrator. All information about amount of delivered goods or provided services has to be entered in Czech currency.

3. Period and deadlines

Recapitulative Statement shall be filed for each month according to Directive part. 263. The member states can deviate from this regulation at express terms. Czech Republic avails from this regulation. § 102 part. 4 – 6

Recapitulative Statement shall be filed for each calendar quarter within 25 days after the end of the calendar quarter. If the tax-payer only fulfils according to part. 1 d) he shall file together with the VAT return at the same time. If the tax-payer according to part. 5 files Recapitulative Statement for each calendar quarter and within the period of calendar quarter fulfils part. 1 a – c, the tax-payer is obliged to file the Recapitulative Statement for months when he fulfilled part. 1 a – c within 25 days after the end of calendar month when the obligation occurred. This tax-payer also files Recapitulative Statement according to part. 4 which is for each calendar month until end of calendar year in which he fulfilled the obligation written in part. 1 a – c. From the above stated regulations is clear that tax-payers with monthly period of taxation shall file the Recapitulative Statement together with VAT return. If the tax-payer only provides services (e.g. he does not have any goods delivery which should be filled in the Statement) and also his period of taxation is quarterly, he shall file in the Statement also quarterly.

Examples:

4. Tax-payer has period of taxation quarterly and he delivers goods to other member states. The purchaser is liable for tax after purchasing. Recapitulative Statement shall be filed monthly according to § 102 part. 4 of Act regulating VAT.

5. Tax payer has period of taxation monthly and provides services with place of performance in other member state according to § 9 of Act regulating VAT. He does not deliver goods. Recapitulative Statement shall be filed monthly according to § 102 part. 5 of Act regulating VAT.

§ 102 odst. 5 zákona o DPH.

If a situation when tax-payer who shall file VAT return as well as Recapitulative Statement quarterly, delivers goods to other member state, is obliged for the quarter when he delivered goods to file Recapitulative Statement retroactively for each month within 25 days after the end of the months when goods were delivered. Until the end of the calendar year he shall file Recapitulative Statement monthly.

Example:

6. Tax-payer files Recapitulative Statement monthly. He has delivered goods to other member state in August. Therefore he is obliged to file Recapitulative Statement related to July until 25th September, Recapitulative Statement related to August also until 25th September and for September until 25th October. Until the end of year he will continue to file Recapitulative Statement monthly. From the beginning of following calendar year he will get back to quarter period, if he does not deliver any goods to other member state.

4. Corrective Recapitulative Statement

Also the Corrective Recapitulative Statement is filed electronically in a form of data message. The deadline does not change.

§ 102 part. 7

Corrective Recapitulative Statement shall be filed within 15 days from the date when the tax-payer who filed Recapitulative Statement finds out that he had stated incorrect data there via data message which obtains electronic signature or which is send via data box, always in form, structure and with data which are given by tax administrator.

Part. 3, referring to transitional provision govern the procedure for filing Recapitulative Statements at the time of force of amendment but only for the period until end of year 2009.

3. Corrective Recapitulative Statement for the period of taxation from the day before the day when this act comes in force, the tax-payer is responsible to file according to § 102 of Act No. 235/2004, as amended from the day the act comes in force.

The Statement will be filed according to regulations which were valid before the amendment, so called “in the old way” regarding periodicity, form and way of filing.

Example:

7. Tax-payer used to file Recapitulative Statement in paper form until the end of year 2009. If he finds out that he made a mistake in the Statement filed for 3rd quarter 2009 during the year 2010, he shall file Corrective Recapitulative Statement within 15 days. The Statement can be filed in paper form. There is a question if the Recapitulative Statement should be filed according to “old” or “new” regulations. There is no note regarding this question in Transitional Provision. Because of the fact that Corrective Recapitulative Statement for the period before the Amendment are filed according to regulation from year 2009 we can deduct that Recapitulative Statement for the last quarter of year 2009 would be the same. Another argument related to this issue can be found in part. 1 of Transitional Provision according to which tax-payer should use the current regulations for the last period of year 2009.

5. Summary

The rest of regulations for filing Recapitulative Statements staid unchanged. If tax-payers carry on business without legal identity, Recapitulative Statement is filed by designated member of association (§ 102 part. 3). The tax administer is still obliged to verify data entered in the Recapitulative Statement and to use them for tax liability as well as data received from international cooperation.

16th November 2009, Olga Holubova, tax advisor, source: Verlag Dashöfer