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Czech Republic: VAT treatment of compensation for stolen goods

Insights from government discussion paper

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June 13, 2025

The Coordination Committee of the Chamber of Tax Advisors and the General Financial Directorate (GFD) recently issued a discussion paper concluding that compensation for stolen goods is subject to value added tax (VAT) only if the right to dispose of the goods as owner is transferred to another person and there is a direct link between the stolen goods and the compensation.

In addition, for compensation to be considered a supply of goods for consideration, it must be determined by mutual agreement whether the right to dispose of the goods was transferred and if the compensation received directly relates to the delivery of the goods.

Read a May 2025 report prepared by the KPMG member firm in the Czech Republic

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