As of January 1 2024, a new VAT rate of 12% has been implemented in the Czech Republic, prompting adjustments to the Czech VAT Return and Control List for the taxable year 2024.
Here’s what you need to know about these changes:
Effective date and filing deadlines
The changes apply to reporting periods starting from January 2024.
The first deadline for filing under the new regulations is February 26, 2024.
Changes in Control List DPHKH1
The Control List DPHKH1 has been updated to accommodate the new VAT rates and reporting requirements.
Fields for the three VAT rates (basic and reduced) will remain in the control report form. This is to facilitate various scenarios such as tax deduction claims within the statutory three-year period and reporting corrections to the tax base and tax amount.
Specific items have been designated for each VAT rate:
- “Tax base 1 and Tax 1” for the basic tax rate.
- “Tax base 2 and Tax 2” for the reduced VAT rate of 12% effective from 1/1/2024.
- “Tax base 3 and Tax 3” for transactions subject to the previous reduced VAT rates (15% and 10%) with relevant corrections.
The “Data box identifier” item will no longer be required in the control report form.
Changes in VAT Return DPHDP3
The changes brought by the consolidation package have minimal impact on the VAT return form.
Descriptions of selected items (lines) of the form will be modified along with relevant instructions for filling it out.
However, the items of the VAT return form themselves will remain unchanged.
These adjustments aim to ensure compliance with the new VAT rate and streamline reporting processes for taxpayers. Make sure to familiarise yourself with these changes to fulfill your tax obligations accurately and on time.
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