Impact of Unpaid Invoices on VAT Deductions Under Czech VAT Act Changes

New VAT obligation effective January 1, 2025, in the Czech Republic
Applies to VAT payers who do not pay for taxable supplies on time
If an invoice is unpaid for over six months, the VAT deduction must be adjusted
Adjustment applies only to the unpaid portion of the invoice
Once paid, the VAT payer can reclaim the adjusted input VAT
Reclaiming is possible within two years of the original due date
No adjustment needed if payment is made within the same quarter for quarterly payers
Rule does not apply to reverse-charge supplies
Adjustment is unilateral, no corrective document needed from the supplier

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.