Investor Presentaiton
BAD DEBT RELIEF
A VAT payer is allowed to claim a VAT refund for uncollectible
receivables (bad debts) if the debtor is under bankruptcy
proceedings, execution or died (effective as of 1 April 2019).
The Czech VAT Act stipulates further conditions for such bad
debt relief.
LIABILITY FOR PAYMENT OF VAT
As the recipient of a taxable supply, a Czech VAT payer can
be liable for VAT from the received supply if it has not been
paid by the supplier. The tax authority may demand VAT
payment by the recipient of the supply if e.g. a supplier
intentionally failed to pay VAT and the customer knew or
should have known of this fact, the price for the received
taxable supply is clearly and unjustifiably different from
the arm's length price; the supplier has been identified
by the tax authority as an unreliable VAT payer or newly
as an unreliable entity; the payment has been made to a
bank account not published in the tax authority's register
(liability is only applied if the payment exceeds CZK 540.000,
including VAT) or consideration for a taxable supply has been
remitted to a foreign account or in a virtual currency etc.
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