- Effective January 1, 2025, several changes to the Czech VAT regime will come into force, including adjustments to VAT registration thresholds, the expansion of the reverse charge mechanism, and modifications to correction rules.
- The VAT turnover period will now be calculated annually, and entities with a turnover between CZK 2,000,000 and CZK 2,536,500 will become VAT payers the following year. The reverse charge mechanism will be expanded to include certain cleaning services.
- The five-year exemption limit for real estate will be abolished, and the substantial change threshold will be reduced from 50% to 30% of the property’s value.
- The time limit for claiming VAT deductions will be reduced from three years to two years, and the time limit for correcting the tax base will be extended from three years to seven years.
- There is also a new requirement to refund tax deductions on liabilities outstanding for more than six months. The CZK 2,000,000 car deduction limit may be revised or removed in 2027.
Source VATit
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