VAT Deduction Deadline Shortened for Unpaid Liabilities

• The draft VAT changes would shorten the deadline for reversing VAT deductions on unpaid liabilities from six calendar months to three.
• If a taxable supply remains unpaid, the taxpayer must reduce the deduction after the third calendar month following the month the debt became due.
• The change is currently planned to take effect on 1 January 2027.
• Example: an invoice due on 29 January 2027 could require deduction reversal in the April 2027 VAT return if unpaid.
• The legislation is not final yet and may still change.

Source: pkfapogeo.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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