Improve VAT reporting and adjustments - Czechia
| Enabled for | Public preview | General availability |
|---|---|---|
| Users, automatically | - | 
Oct 1, 2024 |
Business value
The addition of non-deductible VAT functionality for CZ legislation, specifically to support VAT reporting and accounting period-end posting coefficient.
Feature details
The standard functionality non-deductible VAT allows you to reduce input VAT entries, add the amount of unclaimed VAT to the account or item entry. However, it doesn't cover all mandatory requirements of the Czech legislation, especially regarding VAT reporting and the posting coefficient at the end of the accounting period.
The value of the VAT reduction coefficient can be set for the whole company in one place. The value will be applied to all marked combinations of VAT posting groups. In addition to the input tax reduction through the shortening coefficient, it's also possible to set a 100 percent tax reduction in the VAT account group combination, that is, the case when there is no entitlement to apply VAT on the input side, but the output side (in the case of transactions under the reverse charge regime) has to report VAT in full.
The VAT reduction also applies to the VAT Report and the VAT Control Reports, which include the entire unreduced amounts. After the end of the calendar year, it's possible, on the basis of the calculated settlement coefficient, to recalculate all VAT entries from the period and post the difference between the originally applied and the settlement coefficient.
This functionality extends the non-deductible VAT solution for the Czech Republic also with support for advance purchase invoices.
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See also
Non-deductible VAT for Czech (docs)