New VAT Rule: Adjusting Deductions for Unpaid Invoices After Six Months

New VAT rule effective from 1 January 2025 for unpaid taxable supplies
VAT deduction must be adjusted if payment is not made within six months after the invoice due date
Applies to supplies made on or after 1 January 2025
Example: Invoice due on 15 January 2025 must be paid by 31 July 2025 to avoid adjustment
Affects VAT payers in the Czech Republic who claimed VAT deduction but did not pay
Deduction can be reclaimed if payment is made later, within the general deadline
Rule does not apply to reverse-charge mechanism recipients
Keep detailed records of liabilities by due date
Special attention needed for partial payments, set-offs, retention payments, and instalments
Adjustments must be proportional for invoices with different VAT rates

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.