Czechia widens the small bad-debt VAT correction route and repeals passenger-car input-tax limits from 1 January 2027
This page records one dated change. For the rules in Czech Republic as they stand today, see the Czech Republic guide →
- Jurisdiction
- Czech Republic
- Tax
- VAT
- Change type
- Compliance
- Status
- Enacted
- Impact
- Action required
- Announced
- 17 September 2026
- Effective
- 1 January 2027
- Authority
- Poslanecká sněmovna Parlamentu České republiky
- Systems
- ERP, Tax engine, Reporting
- Verified
- Fetched from official source · high confidence
Czech VAT payers with uncollectible receivables, debtors who must correct input VAT, and businesses buying selected passenger cars.
Update bad-debt (nedobytná pohledávka) and debtor deduction-correction logic: 3-month period and CZK 20,000 / CZK 100,000 limits from 1 January 2027; review selected-car input-tax handling.
ERPTax engineReporting
The same Czech act (Sněmovní tisk 189) amends the VAT Act from 1 January 2027: in section 46(1)(i) (the simplified tax-base correction for small uncollectible receivables) the per-receivable ceiling rises from CZK 10,000 to CZK 20,000, the waiting period falls from 6 months to 3 months and the per-debtor annual cap is CZK 100,000 including VAT; in section 74b(3) the 6-month period for correcting the debtor's input-tax deduction becomes 3 months; cross-references in sections 62(2) and 82(1) and (4) are renumbered accordingly; and the input-tax rules for selected passenger cars in section 72(3), (4), (10) and section 77a are repealed.
What changed in detail
The same Czech act (Sněmovní tisk 189, signed 17 September 2026) amends the VAT Act from 1 January 2027.
Section 46(1)(i) is the simplified tax-base correction for small uncollectible receivables. The act raises the ceiling per receivable from CZK 10,000 to CZK 20,000 including VAT, cuts the waiting period after the due date from 6 months to 3 months, and raises the annual cap per debtor from CZK 20,000 to CZK 100,000 including VAT. In section 74b(3), the 6-month period for the debtor’s correction of input-tax deduction becomes 3 months.
The input-tax rules for selected passenger cars in section 72(3), (4), (10) and section 77a are repealed.
What it means
Creditors can use the simplified correction sooner, 3 months after the due date instead of 6, and for larger receivables: up to CZK 20,000 each, within an annual cap of CZK 100,000 per debtor. Debtors face the mirror image: the clawback of input VAT on unpaid supplies arrives after 3 months instead of 6.
The car provisions are removed, not amended, so businesses that relied on the special passenger-car input-tax rules should check how their existing vehicles are treated after the repeal.
Proof
V § 46 odst. 1 písm. i) bodě 2 se slova „6 měsíců“ nahrazují slovy „3 měsíce“.In section 46(1)(i), point 2, the words "6 months" are replaced by the words "3 months".
Archived from the official distribution · Sněmovní tisk 189 — text of the act as adopted (t018905.docx) · www.psp.cz