Žádost o závazné posouzení určení sazby DPH – na co si dát pozor?

Request for a binding ruling on determination of VAT rate - what to be aware of?

A binding ruling gives taxpayers greater certainty in applying the correct VAT rate to ambiguous or unclear items. Its importance has increased at the beginning of this year due to the changes in VAT rates brought about by the consolidation package, which we have informed you about HERE. However, we would like to point out that this process has its own rules that need to be followed in order to successfully process the request.

The GFD has informed (HERE) that it is currently experiencing an increased demand for binding rulings and is often encountering incorrect applications. As a result, the whole process is prolonged both for the applicant concerned and for other pending applications. In order for the binding ruling to be processed smoothly and quickly, it is essential that the application contains all the required elements.

In case of a flawless application for a binding ruling, the decision should be processed within three months from receipt of the application. Any requests to remedy defects in the submission, requests to pay an administrative fee or submission of the application to a tax authority not competent in terms of subject matter and location will extend this time limit.

If you are considering applying for a binding ruling we will be happy to assist you. We have extensive experience in preparing applications which always contain all the formalities and the correct justification.

If you need any assistance, please contact the authors of this article or the EY client team with whom you regularly work.

Authors:

Nikola Kratochvílová

Michaela Kleinpeterová