Czech VAT Draft Expands Bad Debt Relief and Raises Minor Receivable Limits

• The Czech Ministry of Finance has proposed two draft VAT Act amendments.
• The first amendment improves bad debt corrections for minor receivables by making it easier for creditors to reduce their tax base on unpaid debts.
• Key changes include raising the per-receivable limit to CZK 20,000, lowering the overdue period to 3 months, and increasing the annual per-debtor limit to CZK 100,000.
• Creditors must send at least two written payment requests, and the simplified regime will not apply if another correction rule already covers the receivable.
• Debtors will have their tax deduction adjustment period shortened from 6 months to 3 months.

Source: regfollower.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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