VAT refund

If the VAT payer has declared an excessive deduction in the tax return, the tax administrator is obliged to refund it within 30 days of the assessment or within 30 days of the last day of the deadline for filing the return. The tax administrator shall refund overpayments exceeding CZK 100. Before the tax administrator sends the overpayment, it examines whether the taxpayer has any previous arrears of VAT or other taxes. VAT refunds can then change significantly. If it finds arrears, it will offset them against the overpayment and refund only the difference to the subject. The taxpayer finds this out on his account and discovers that the refund of the overpayment is lower than he expected. It is therefore advisable for businesses to keep track of the amount sent to them by the tax authority as part of the VAT refund and, if the amount does not match the over-deduction requirements, to ask the tax authority where it has sent the amount or which older debt it has set off.