Tax Authority in the Czech Republic Begins Oversight of Online Retailers

The Czech Tax Administration will begin EMPORION, an inspection campaign aimed at online store operators' income reporting for VAT and income tax, at the end of August. Analysts have already discovered unreported revenues of CZK 734 million. The first phase will concentrate on 85 companies that sell products online but do not report any sales or register for VAT, even though they probably have obligations. Those who underreport actual sales will be the focus of the second phase.

In an effort to give companies time to fix mistakes before inspections begin, the Tax Administration advises all sellers to verify their reported income in order to avoid penalties.