Informace GFŘ ke zvýšení obratu pro registraci k DPH

GFD information on the increase in turnover for VAT registration

The GFD issued Information on the amendment to the VAT Act, which increases the turnover for mandatory registration to 2mil. CZK. The amendment was published in the Collection of Laws on 2 December 2022 and the transitional provisions will therefore be effective from 3 December 2022.

The effective date of the transitional provisions is important for VAT payers who do not reach the new limit of 2mil. The application for cancellation of registration must be submitted within a very short period of 5 days from the effective date of the transitional provisions, i.e. by 8 December 2022.

If the application is submitted within the deadline, the applicant will cease to be a VAT payer on 31 December 2022. If the decision of the tax authority to cancel the registration is not delivered to the applicant until after this date, the applicant will cease to be a VAT payer on the day following the date of delivery of the decision.

Irrespective of the moment of delivery of the decision to deregister the VAT payer, the applicant will be able to use the flat-rate personal income tax scheme already for 2023. Conversely, if the deadline for submitting the application is missed, the payer will not be able to use the flat-rate personal income tax scheme for 2023.

Companies in the position of customers of "small" VAT payers are also reminded that they will need to pay increased attention to the invoices received during this transitional period. If the supplier has ceased to be a VAT payer but the invoice is issued including VAT, then the recipient is not entitled to deduct this VAT and should return the invoice for correction.

Please contact your EY client team or the authors of this article with any questions or comments.

Authors:

Jevgenija Bajzíková

Nikola Kratochvílová