What you’ll learn in this article:

• What an additional tax return notice actually means

• How long you have to respond – and what happens if you don’t

• When you should file a corrected return – and when you should resist

• Legal risks, penalties, and possible defences

• Advice from a Czech lawyer for both regular and crisis situations

Legal explanation

Under Section 145 of the Czech Tax Code, the tax authority may ask a taxpayer to file an additional tax return if there are doubts about the accuracy of a previous return. This typically happens when a discrepancy is found in your VAT filings, a supplier reports different figures, or the authorities compare your data with registry information and find mismatches.

⚠️ Important: This notice is not a decision – but it may be a warning that a tax audit is coming. If you fail to respond, the authority may assess your tax based on estimates – which is usually very disadvantageous for the taxpayer.

Real-life example

A client – an e-commerce entrepreneur – received a notice regarding a VAT return for Q2. At first, he thought it was a mistake, since everything was submitted correctly. It turned out his accountant had misclassified an intra-EU purchase. After a legal consultation, we filed a corrected return with a minor adjustment – preventing an audit and avoiding sanctions.

Common risks and mistakes

• Inaction: Ignoring the notice can be interpreted as agreement with reassessment.

• Rushed filing without legal review: A corrected return has serious legal consequences – it may be seen as an admission of fault.

• Poor argumentation: Vague or emotional responses often fail to address the issue and can make matters worse.

Lawyer’s recommendation

A notice to file an additional tax return is not a formality – it’s often the first step before tax reassessment, penalties, or even a criminal referral. If you’re unsure what the tax authority is questioning or how to respond, I strongly recommend consulting a lawyer immediately. A skilled tax lawyer will assess the situation, prepare a proper response – and most importantly, help you avoid escalation.