DPH přiznání na konci kalendářního roku

VAT Return at the End of the Calendar Year

With the start of the new year, we would like to remind you of the important aspects to focus on when submitting the last 2024 VAT return. Below you will find an overview of key areas that require your attention.

Proportional Coefficient - at the end of the calendar year, it is necessary to consider the actual proportion of taxable supplies used for private purposes. If this proportion differs by more than 10%, there is an obligation (or option) to adjust the deduction. For example, in the case of private use of a larger number of company cars, this can be a relatively demanding exercise.

Reduced Coefficient - if you have exempt supplies and use a provisional coefficient to determine the deduction entitlement, you need to reconcile the tax deduction at the end of the calendar year.

Adjustment of Tax Deduction - if the extent of use of long-term assets for purposes that entitle you to a deduction changes, it is necessary to adjust the tax deduction. This adjustment is made over a period of 5 years (10 years for real estate), always in the last return for the given calendar year.

Possible Change of Tax Period - based on the recent amendment, it is possible to apply the increased limit for quarterly VAT payers of CZK 15 million already for 2025. The change is made by entering the appropriate code in the December form.

Automatic Deregistration - if you have not carried out economic activities, there is a risk of deregistration. If you want to prevent this, contact the tax administrator, and discuss the situation.

Intrastat – verify whether your obligations in the area of Intrastat reporting are changing – do you meet the conditions for simplified reporting for the year 2025, or do you have the option to cancel your registration?

Representative for Receipt of Correspondence from the Czech Tax Authorities - this obligation applies to foreign entities and must be fulfilled by the end of February. In case of non-compliance, sanctions will be imposed.

Long-term Provided Services – services provided over multiple years have a statutory date of taxable supply (DUZP) set to December 31, unless other conditions are met. Therefore, it is necessary to evaluate whether there is an obligation to pay VAT in the December return.

If these points are relevant to you, we would be happy to discuss them in more detail. In such a case, please contact the authors of the article or the EY advisory team you work with.

Authors:

David Kužela

Ivana Svobodová