The Czech parliament has recently approved previously reported VAT changes to enter into force in 2017. We highlight the new mechanism to be applied to unreasonable delays concerning the 7 refunding of VAT. Late payment interest will be due if, notably the following conditions are met: If excess VAT paid has not been refunded within 4 months succeeding:
- The last day of the deadline for filing the VAT return; or
- The actual day of the VAT return filing if occurring after the legal deadline.
Interest will be based on the Czech National Bank´s rates and will not be accounted/due while certain administrative