- From January 1, 2025, Czech companies must reverse VAT deductions on invoices unpaid after six months.
- The rule excludes reverse charge supplies and only applies to transactions from 2025 onward.
- If payment is received after adjustment, VAT can be reclaimed within two years.
- Accurate record-keeping is crucial, especially for partial payments and offsets.
- Failure to comply may impact cash flow and risk tax office penalties.
Source: fiscal-requirements.com
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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