The Czech Financial and Customs Administration successfully recovered 20.9 billion crowns in unpaid taxes and customs duties last year, according to a report published by the Ministry of Finance. While the total amount remained similar to 2023 figures, there was a slight shift in its distribution.
Financial Administration collected 16.2 billion crowns, half a billion less than the previous year, while Customs Administration recovered 4.7 billion crowns, marking a half-billion increase year-on-year. Overall, authorities pursued tax arrears totaling 25.3 billion crowns across 1.9 million cases, with taxpayers eventually settling their debts in approximately 732,000 instances – an increase of 80,000 cases compared to the previous year.
By the end of last year, the Financial Administration reported outstanding tax arrears of 37.8 billion crowns, with unpaid VAT accounting for the majority at 22.1 billion crowns. Meanwhile, Customs Administration recorded 15.3 billion crowns in outstanding taxes and duties, with the largest portions coming from mineral oils (4.5 billion), tobacco products (3.2 billion), and spirits (1.4 billion).
The report also highlighted a significant increase in withheld VAT refunds, which reached 787.9 billion crowns, up from 576.7 billion in 2023. Despite being the highest figure in four years, this amount still represents less than half of what was common before 2021. A tax code amendment implemented that year has enabled businesses to access their funds more quickly than in the past.
For businesses claiming VAT refunds, the process requires proving eligibility – a procedure critics argue places financial strain on companies by withholding funds, potentially threatening their viability in extreme cases. When claims are verified, taxpayers receive financial compensation in the form of interest. Last year, the Financial Administration paid out 148.6 million crowns in such interest payments, an increase of 94 million crowns compared to 2023.