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

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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