Investor Presentaiton
Recovery of Input VAT
In general, a Czech VAT payer is entitled to deduct input
VAT in respect of received supplies used for the VAT payer's
own business activity. Input VAT can be claimed within
three years after the end of the tax period in which the
taxable supply was made. A VAT payer must have a VAT
invoice to exercise the right to deduct input VAT (a VAT
document). A VAT payer is generally not entitled to deduct
input VAT on taxable supplies used for VAT exempt supplies,
representation (entertainment) or non-business purposes.
A partial VAT deduction may be claimed in respect of taxable
inputs related to both types of supplies, i.e. those qualifying
for deduction of input VAT and those not qualifying for
deduction (e.g. exempt supplies or non-business use).
A Czech VAT refund is possible for EU business entities
under a special mechanism. Non-EU businesses can claim
refunds of Czech VAT by submitting a written application to
the tax authority for Prague 1. Refunds are only made on the
basis of reciprocity.
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