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Amendment to the VAT Act – current information
Learn how the upcoming amendments to the VAT Act will affect your business or company
The Government of the Czech Republic has submitted a comprehensive amendment to the VAT Act to the Chamber of Deputies for discussion. The amendment emphasises changes in the claiming of VAT deductions, unpaid liabilities, taxation of real estate transfers and other key areas. These changes, which are due to come into effect gradually between 2025 and 2027, require your close attention so that your business can respond in a timely and adequate manner. Below you will find information on the upcoming changes and how to best prepare for them.
Overview of the main changes that the amendment should bring:
- Obligation to reimburse the VAT deduction if the liability is not paid within six months of the due date;
- Extension of the period for correcting the VAT base to up to 7 years;
- Reduction of the time limit for claiming VAT deductions;
- Extension of the situations leading to VAT corrections for bad debts;
- New concept of exemption for the supply of immovable property and completely different rules for determining a substantial change to a building;
- Abolition of special procedures for self-created assets;
- Introduction of new forms of VAT refunds, such as refunds to foreign persons when importing goods from third countries or when acquiring goods from another EU Member State;
- Changes to the authorisation for delivery to foreign persons established outside the EU;
- Simplification of the procedure for issuing tax documents by the customer - changes to the self-billing set-up.
What areas should you focus on as part of the VAT changes?
Why you should prepare for VAT changes with us?
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