We would like to mention that according to the Czech VAT Act, in the case the payment including Czech VAT is transferred by the customer to a bank account of the supplier led by a foreign bank (i.e. by a bank seated outside of CZ), the customer is liable for VAT in the case the supplier fails to settle the VAT liability to the Tax Office.
This responsibility is also transferred to the customer if the payment exceeds CZK 700,000 and is paid to a Czech bank account of the supplier different from those which were published by the Tax Office. Therefore, when effecting domestic supplies placed in the Czech Republic charged to the local companies (e.g. domestic supplies of goods), the client should also consider arranging a Czech bank account in this respect in order to avoid refusal of their Czech customers to settle the invoices. In the case of your interest, our Management&Administration dept. would be able to arrange for the Czech bank account.
