- GFD issued information on VAT deduction correction for overdue receivables.
- New provision applies to adjustments after 1 January 2025.
- VAT payers must reduce deductions if receivables remain unpaid after six months.
- If debt is paid later, deduction can be reclaimed within a standard time limit.
- Due date for VAT purposes is based on contracts and other documents.
- Six-month period is tested separately for debts with split maturity.
- GFD advises keeping records of overdue payables and their parts.
- Instructions provided for reporting deduction reductions and reclaims in VAT returns.
- Consistent approach required for both reduction and increase in VAT ledger statements.
- Quarterly VAT payers exempt from deduction reduction if payment is made by period end.
- Obligation does not apply to supplies under reverse charge.
Source: danovky.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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