The value added tax (VAT) law was amended in an effort to unify the amount of tax calculated (using both the top-down and the bottom-up calculation approach) and to eliminate the “double” rounding of cash payments when the first rounding concerns the calculated tax and the second one the total amount of the VAT payment.
Nevertheless, there is still some uncertainty regarding the rounding of a total payment made by a credit transfer (not explicitly provided for in the VAT law).
The revisions to the rounding rules were effective 1 April 2019 but under a transition provision, the prior rules could be applied until 30 September 2019. Under the amendments, the amount resulting from the rounding of the total amount when paying in cash is not to be included in the VAT base. In other words, the amount of rounding to whole Czech crowns is not taken into account for VAT purposes.
Read a November 2019 report prepared by the KPMG member firm in the Czech Republic
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