The General Financial Directorate (GFD) in the Czech Republic recently announced the following VAT amendments:
– When a corrective VAT return is submitted, in which the total amount of the reported input VAT exceeds the total output VAT liability, the total final amount of the net input VAT deduction shall ordinarily be refunded without the taxable person having to request the refund.
– When a VAT return generates a VAT credit position, such refund shall be processed within 30 days from the deadline for submitting the relevant VAT return.
However, if a VAT audit takes place the refund shall only be processed upon closing such audit. In this context, and considering that the VAT audits can take some time, a new legal instrument named as “provision of the advance payment for net input VAT deduction” was introduced into the Czech Tax Code, in which under certain conditions the taxable person is entitled to receive an advance payment in the amount corresponding to that part of the VAT refund requested in the VAT return which is not being audited.
Source VATSquare
