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The 2019 VAT amendment was approved by the government and is currently awaiting ratification by the Chamber of Deputies. We give you an overview of the most important proposed changes.
Payers will have another registration obligation: They must make an effort to get the tax document to the recipient of the fulfilment – by post, through a data box, email, etc. In the process, the payer can be summoned by the tax administrator to prove this fact. We recommend that you verify if your invoice system keeps records of delivery! The penalty may be up to CZK 500,000. Your IT systems need to be modified properly to prevent failure.
Explicit regulation of dedicated and multipurpose vouchers: For example, retail vouchers where each type of voucher is treated differently in terms of VAT. Dedicated vouchers have a known rate of tax and place of performance and each transfer of this voucher has to be taxed. With multipurpose vouchers, only the delivery of the goods or the provision of the service is taxed.
Payers now have to track the value of repairs exceeding CZK 200,000 for 10 years, because of the VAT deduction on immovable property. If the manner of use changes, or if the owner or the lessee changes to a non-VAT payer, part of the claim for deduction has to be returned.
Does your business include renting or leasing out flats, houses and other immovable assets intended for housing? From 2021 a change is coming: These rentals will not be subject to output VAT, which will result in the obligation to refund a proportional part of VAT deductions you have applied in the past 10 years. It is therefore necessary to take this proposed legislation into account in current and planned projects.