VAT & EET news
We bring you updates in the field of VAT & EET (Electronic records of sales) and every month we will provide a brief summary of the most important news on our website. In the first part we will review the following topics: changes in VAT effective from 1 October 2019 (rounding and calculation of VAT from above + new control report form), BREXIT, effectiveness of the EET amendment for almost all remaining activities, information from the GFD CR.
NEWS FROM 1 October 2019
- ROUNDING: Based on the GFD’s information dated 14 October 2019, it is NOT necessary to divide any rounding into tax and VAT bases, even in the case of bank transfer or credit card payments. For example, rounding CZK 0.30 therefore does not have to be divided into a tax document of 0.25 ZD + 0.05 VAT.
- VAT CALCULATION FROM ABOVE: If an advance payment of CZK 121,000 is received for performance at the standard rate, the coefficient 0.1736 can no longer be used. You need to change the algorithm. The VAT calculation is simplified as follows: 121,000 – (121,000 / 1.21) = CZK 21,000.
- CONTROL REPORT FORM: In sections B2 and A4 it is necessary to set the letter N in the last column in case it is not a correction for an irrecoverable receivable. We recommend that you check the form on the Tax Portal of the Financial Administration of the Czech Republic before filing the control report for September 2019.
EET – EFFECTIVENESS OF STAGES 3 & 4
Despite the early signature of the President, the amendment to the EET Act was published in the Collection of Documents of the Czech Republic only in October 2019. It follows that the mandatory commencement of EET reporting for almost all remaining activities will occur from 1 May 2020.
We have prepared a separate overview of important VAT-related alerts for a hard Brexit. In case of a Brexit with an agreement, there should be a transition period until at least the end of 2020.
INFORMATION GFD CR (APRIL – SEPTEMBER)
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