Czech Republic: Input VAT deduction on medical equipment; delivery of invoice not required for VAT deduction; declaration of VAT on advance payments

The KPMG member firm in the Czech Republic prepared reports on the following recent VAT-related court decisions:

• The Court of Justice of the European Union (CJEU) held in case C-513/24 that input VAT deduction on medical equipment used by healthcare providers depends on the asset’s actual use, not on the fact that its acquisition is required by law. According to the CJEU, the decisive factor is always a direct link to specific taxable supplies or to the taxpayer’s overall economic activity. Read an April 2026 report
• The EU General Court held in case T-689/24 that the right to deduct VAT arises at the moment the tax liability arises (i.e., upon the supply of goods or the provision of services). Thus, the rule under Czech law requiring delivery and receipt of an invoice for the right to arise is incompatible with EU law. Nonetheless, the financial administration has indicated that it is waiting for final review of the court’s decision before changing the Czech rule, and until then, the rule still applies. Read an April 2026 report
• The Supreme Administrative Court (SAC) held that the obligation to declare VAT on a received advance payment arises when, as of the date the advance payment is received, the taxable supply is known with sufficient specificity. Certainty that the supply will actually take place is not required. Read an April 2026 report