Repayment of Czech VAT for Unpaid Purchase Invoices Required from 2025

If you reclaim VAT on a purchase invoice - fully or partially - but do not settle the liability to your supplier within six calendar months after the month of the taxable supply, you must repay the VAT you previously claimed.

What do you need to do?

• The repayment must be included in the VAT return for the period in which the six-month deadline falls
• The amount to repay corresponds to the unpaid portion of the invoice
• This rule does not apply to supplies subject to the reverse charge mechanism

First impact: July 2025 VAT return

The rule takes effect for the first time in the July 2025 tax period. This means that any VAT claimed on taxable supplies received in January 2025 - but not paid by July 31, 2025 - must be reversed in your July return.

An exception applies if you hold a receivable from the supplier and the amounts are contractually or legally offset. In that case, you're not required to repay the VAT but only up to the offset amount.

Do you have questions or need help reviewing your Czech VAT position? Get in touch, we're happy to assist.