- From January 1, 2027, rules for adjusting tax base on low-value bad debts will be relaxed.
- A creditor may adjust if the debt is up to CZK 20,000 incl. tax, at least 3 months overdue, and total debts per debtor do not exceed CZK 100,000 per year.
- The overdue period is shortened from 6 months to 3 months, and the debt limits are increased.
- These rules also apply to bad debts from taxable supplies made after January 1, 2025, if the adjustment is made after January 1, 2027.
- Debtors must reduce claimed input VAT after 3 months of non-payment, instead of 6 months, regardless of debt size.
Source: grantthornton.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.
Latest Posts in "Czech Republic"
- VAT Act Amendments: EET 2.0 and Proposed VAT Rate Changes
- VAT Liability Determined by Contract Substance, Not Title
- VAT on Planning Contracts: Substance Over Title Determines Tax Liability
- EPPO Charges Six Over €17.4 Million Czech VAT Fraud Scheme
- €17.4m VAT Fraud Linked to China Imports Uncovered in Czechia
