Effective April 1, 2019, the General Financial Directorate (GFD) of the Czech Republic introduced significant changes concerning corrections of the tax
base in relation to bad debts. The GFD guidance explicitly stipulates that if a creditor’s receivable arose before the amendment’s effective date, but
involves insolvency proceedings commenced after April 1, 2019, the taxpayer must apply the new law. The GFD further draws attention to the fact that the
amendment allows for the correction of the tax base for receivables included in the approved reorganization plan, which was not possible under the original
wording of the act.
Source KPMG
Latest Posts in "Czech Republic"
- Draft Amendment to VAT Act Targets Bad Debts, Unpaid Liabilities, and Non-Alcoholic Beverage Tax Rates
- How to Register and Record Sales Using EET 2.0: Steps for Retailers and Entrepreneurs
- Ministry of Finance Submits Draft VAT Act Amendment to Transpose ViDA Rules
- EU Court: VAT Deduction Pro Rata Excluded if Equipment Used Only for Exempt Activities
- Draft EET 2.0 Amendment Introduces Earlier VAT Corrections for Bad Debts and Expands Reduced VAT Rate for Catering
