Czech Republic: Amendments in VAT law 2025
Changes to times limits for correcting VAT base and claiming VAT deduction
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January 15, 2025
The amendment to the Value Added Tax (VAT) Act 2025 introduces the following changes effective January 1, 2025:
- The time limit for correcting the VAT base has been extended to seven years. However, in the case of advances, the time limit for correcting the tax base will remain three years.
- The time limit for claiming the VAT deduction has been reduced to two years (i.e., the VAT deduction can be claimed by the end of the second year following the year in which the obligation to correct the deduction arose).
- The rules for correcting the VAT base for irrecoverable debts have also changed. The rules are being softened, with the most significant change being that the debtor no longer must be a VAT payer (provided that the debtor was a VAT payer at the time the unpaid supply was carried out). The amendment also provides for automatic correction for the non-payment of “small” debts, defined as debts up to CZK 10,000 that are six months overdue.
Read a January 2025 report prepared by the KPMG member firm in the Czech Republic