Commentary

VAT on expenditure

10 Czech Republic
10 Czech Republic | Commentary

VAT on expenditure

10 Czech Republic | Commentary

VAT on expenditure

Businesses that make taxable supplies are entitled to recover Czech Republic VAT incurred on expenditure (known as 'input VAT') used for the purpose of making these taxable supplies other than those items that are specifically blocked (see below).

Businesses that make only exempt supplies cannot recover input VAT. Businesses that make both taxable and exempt supplies can partly recover input VAT (explained further in 10.45) other than those items that are specifically blocked.

VAT incurred on the following items of expenditure is specifically blocked and therefore cannot be recovered:

  1.  

    •     business entertaining;

  2.  

    •     private or non-business expenditure;

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