- 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
Source: pkfapogeo.cz
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.
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