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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
At present, a comprehensive amendment to the VAT Act has been going through the legislative process and is expected to take effect from 1 January 2025. The Senate of the Czech Republic has approved the amendment, and it now only requires the President's signature and publication in the Collection of Laws. There is broad agreement that the amendment is very likely to be adopted on time.
The amendment focuses primarily on changes to the tax base correction, rules for claiming VAT deductions, matters of unpaid liabilities, taxation of real estate transfers, and many other critical areas. The changes, which will be phased in from 2025 to 2028, require increased attention to ensure your business can respond appropriately. Below is a summary of the key information.
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;
- New approach to issuing tax documents by the customer (self-billing).
What areas should you focus on as part of the VAT changes?
Why you should prepare for VAT changes with us?
Expert team:
With more than 40 experts, we track VAT changes for you, providing you with practical advice tailored to your specific industry. Stay one step ahead with us.
Years of experience:
Since 1993, when VAT was introduced in the Czech Republic, we have been providing expert advisory services. Our extensive experience in both local and international tax environments ensures that you receive the best guidance.
Comprehensive services:
We offer our clients a wide range of services, which we combine appropriately according to the needs of your business and in consultation with you - from providing technological tools from our tax and legal consulting workshop to optimising financial processes.
Innovative Tools:
We utilise our technological tools, such as taxCube for preparing VAT reports, Maják, and other tools.
- taxCube – A tool for easy preparation and submission of VAT and Intrastat Reports;
- Maják – Protects you from unknowingly being involved in VAT fraud and the risk of losing your right to deduct VAT;
- VAT analytics – A tool for bulk verification of the complete set of documents entering the VAT return;
- and many more.
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