Informace GFŘ k opravě odpočtu DPH u neuhrazených závazků byla zveřejněna

The General Financial Directorate has published information regarding the correction of the right to deduct VAT on overdue receivables from the debtor's side (HERE). We have provided detailed information about this new obligation in our tax and legal news HERE, as well as the situations covered in the Information in our previous alert HERE.

The information was published following an external consultation process. Compared to the original draft, the Information contains mostly minor clarifications in the text, rather than fundamental changes or additions proposed by the Chamber of Tax Advisors of the Czech Republic. The procedure in certain situations remains unclear.

We recommend that VAT payers establish control mechanisms to alert them to liabilities that have exceeded the six calendar months immediately following the calendar month in which the liability became due. Additionally, we advise paying increased attention to certain situations (discounts or changes in the amount of the pro-rata VAT deduction for unpaid liabilities) that require repeated complicated entries in the VAT return and VAT ledger.

Authors:

Ivana Krylová

Michaela Kleinpeterová