Informace Finanční správy k povinnosti nově registrovaných plátců DPH

This year, an amendment to the VAT law came into effect, which affects, among others, newly registered VAT payers. The Financial Administration is now providing an interpretation (available HERE) aimed at clarifying ambiguities in the law and standardizing the procedure for submitting the first tax return after VAT registration.

According to the amended wording, newly registered taxpayers must report in their first tax return the value of supplies made under the small business scheme (in general, supplies they made while still being non-taxpayers in the given calendar year) and exempt supplies (for example, financial services). The law and the explanatory notes do not specify how these values should be reported.

In response to the ambiguity of the law, the Financial Administration has published an interpretation in favor of taxpayers, as the original intention "was not fully reflected in the text of the relevant provisions of the VAT Act." The value of the aforementioned supplies should be reported in a way that does not affect the amount of the settlement coefficient, thus not reducing the potential claim for a tax deduction. The information also includes a specific example that may help in understanding the issue.

This step can be seen as a welcoming signal for entrepreneurs who strive to fulfill their obligations correctly but encounter ambiguities in legislation.

If this change affects you, or if you need assistance with VAT registration, preparation of your first tax return, or determining the correct claim for a tax deduction, we are happy to help you.

Authors:

David Kužela

Ivana Svobodová