Prokazování ztratného v maloobchodě – EY studie

Substantiating shortages (losses) in retail - EY study

Stock shortages often have material tax implications, as not only do unexplained shortages represent a tax non-deductible expense for income tax purposes, but VAT payers are also obliged to repay the deduction originally claimed. The associated tax burden may therefore exceed 40% of the original cost of the missing stock, and may be higher or lower in specific cases.

It is therefore advisable to carefully monitor the reasons for the shortfall, the possibilities of explaining them and - last but not least - not to underestimate the importance of preparation of the related documentation.

One way to minimise the tax burden is to set properly justified rates for shortages (losses) in retail. The tax law explicitly states that the tax authorities should examine whether the amount of the rates correspond to the nature of the taxpayer's activity and the usual level of rates of other taxpayers with similar activities and, in case of a difference, the tax authorities will assess additional tax (adjust the tax base).

The determination of the retail shortages (losses) rates is often problematic for taxpayers as they have very limited possibilities to compare their retail shortages (losses) with the market level.

To make the determination and justification of the retail shortages (loss) rates easier, we are offering you the opportunity to participate in our current study Shortages (Losses) in Retail. Its output will be provided free of charge to survey participants. Based on it, you will be able to get a comprehensive picture of the  retail shortages (losses) rates and the current level of shortages of other study participants with a similar business profile. The results will be anonymised and presented in summary form, so you do not need to worry about your data being published.

If you are interested in participating in the study, please fill out the non-binding application form HERE and we will send you the associated questionnaire along with instructions on how to complete it. Alternatively, please contact the authors of this alert directly who will be happy to clarify any potential uncertainties.

Authors:

Filip Senfeld
David Kuzela