Recently the Czech Chamber of Deputies approved the draft amendment to the Tax Code, and the associated amendment to the VAT Act, which should enable the return of the undisputed part of the excessive VAT deduction, and passed it on to the Senate. The system should work in such a way that in case the tax administrator has no doubts during the tax inspection about the part of the excessive deduction, it will provide the VAT payer with a so-called advance payment for the tax deduction, if its unquestionable part exceeds CZK 50,000.
The ECJ has recently ruled on this issue in judgment C-446/18 AGROBET CZ, where it did not rule out the reimbursement of the undisputed part of the deduction, if it can be clearly determined.
Source: Czech Chamber of Deputies
https://public.psp.cz/en/sqw/text/tiskt.sqw?ct=841&ct1=0&o=8
Ondřej Štědrý
Tax Adviser
Prague
Czech Republic
