New VAT Deduction Obligation for Unpaid Liabilities Effective July 2025: Key Changes Explained

New VAT obligation effective from July 2025 for unpaid liabilities over six months past due.
Significant change due to EU Court decision: return claimed VAT on unpaid invoices after six months.
First applicable period is July 2025; guidance issued by General Financial Directorate.
Applies to taxable supplies received from January 1, 2025.
VAT adjustment made in the tax return for the period when the six-month deadline passes.
If the debtor later pays, they can reclaim the corresponding VAT amount.
Example: If a customer pays only 80 percent of an invoice, they must return 20 percent of the claimed VAT.
Quarterly taxpayers are exempt from reducing VAT deduction if payment is made by the end of the relevant tax period.
VAT adjustment reflected in both the VAT return and control statement.
In the VAT return, reduction is shown on line 40 or 41 with a negative sign and on line 34 with a positive sign.
In the control statement, adjustments are always reported in section B.2, even for transactions under 10,000 CZK.

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.