The introduction of § 74b of the VAT Act (ZDPH) has made the monitoring of unpaid invoices a part of the taxpayer’s fiscal responsibility. A missed payment deadline is no longer just an accounting oversight — it is now a direct violation of tax obligations. Failing to adjust a deduction for an unpaid invoice on time results in additional VAT liability, late interest charges, and, in some cases, fines imposed on the taxpayer.
In this article, you will learn what may happen if the VAT deduction is not returned on time, which mistakes occur most frequently, and why systematic control of overdue obligations (závazky po splatnosti) has become not just a best practice, but a mandatory component of every VAT payer’s compliance process.
New Obligation – New Area of Responsibility
§ 74b ZDPH introduces a direct obligation for the taxpayer to return the VAT deduction if the obligation (invoice) was not paid within the prescribed period. This is not a recommendation or a conditional rule based on receiving a notice — it is a formal legal requirement that applies automatically.
Failing to adjust the deduction constitutes an error in the tax return — the taxpayer continues to claim a deduction for an amount to which they no longer have a right. This is considered a breach of tax duty, regardless of whether the supplier was aware of the non-payment or whether the tax authority issued any notifications.
The responsibility to return the deduction lies entirely with the recipient of the goods or services. It is independent of the actions of the counterparty and does not require any initiative from the tax office. The taxpayer must independently monitor payment deadlines and perform the deduction adjustment in a timely manner.
What Happens if the Deduction Adjustment Deadline Is Missed
If the six-month period after the agreed payment due date expires and the deduction adjustment has not been made, this is considered a breach of the law. The taxpayer is effectively retaining a VAT deduction to which they are no longer entitled, thus distorting their tax obligation.
The first consequence is an additional tax assessment (so-called doměrek DPH). The tax authority will assess the amount of VAT that should have been returned in the tax period when the six-month payment deadline expired. This adjustment is mandatory and will occur regardless of the reason the deadline was missed.
Next, úrok z prodlení — interest for late payment — is automatically applied for each day of delay, starting from the moment the adjustment obligation should have been fulfilled. Even if the taxpayer voluntarily corrects the situation later, the accrued interest remains payable.
Additionally, depending on the circumstances, a fine for incorrect tax reporting (porušení povinnosti správně tvrdit daň) may be imposed, as the tax return included a deduction not reflecting the actual status of the obligation.
It is important to understand: a “retroactive” correction does not eliminate the consequences. Amending the tax return is a duty, but it does not cancel the additional tax or waive the accrued interest. The later the error is identified and corrected, the higher the resulting tax and penalty amounts.
Common Accounting Errors in Applying § 74b
When working with the new provision, accountants must avoid several frequent mistakes that can lead to non-compliance and financial penalties:
- Lack of control over the due date (splatnost). Many companies monitor whether a payment has been made, but fail to track the actual due date — the date when payment is contractually required. As a result, they incorrectly calculate the six-month deadline based on when funds were received, rather than on the splatnost stated in the contract or invoice. This often leads to missed deadlines for deduction adjustments.
- Incorrect calculation of the six-month period. A common error is to count six months from the tax point (DUZP) instead of the due date (splatnost). In fact, the law requires counting from the contractual payment deadline. Using DUZP as the starting point is a methodological mistake that can shift and delay the obligation to adjust the deduction.
- Ignoring partial payments. When invoices are partially paid, some accounting departments treat them as either fully paid or entirely unpaid. This oversimplified approach prevents accurate identification of the unpaid portion after six months. Under § 74b, it’s essential to track partial settlements and calculate precisely the outstanding share that requires deduction adjustment.
- No register of unpaid invoices. Without a systematic register of závazky po splatnosti (overdue obligations), it’s nearly impossible to control deadlines effectively. Managing unpaid invoices manually, in unstructured spreadsheets, or without a formalized tracking system often leads to overlooked six-month deadlines and missed correction obligations.
Penalties for Late Deduction Adjustment under § 74b
Failure to timely return a deduction under § 74b leads to multiple consequences that may be cumulative:
- Doměrek DPH (Additional VAT Assessment). This is the core adjustment — the amount of the deduction the taxpayer should have returned after the six-month period expired. This VAT reassessment is applied automatically, regardless of the reason for the error.
- Úrok z prodlení (Late Payment Interest). Interest is charged automatically for each day of delay, starting from the date the adjustment should have been reflected in the VAT return. Even if the taxpayer files a corrected return voluntarily, the late payment interest remains payable.
- Pokuta (Penalty for Incorrect Tax Reporting). A tax penalty for declaring a deduction incorrectly and failing to adjust it on time. The amount depends on the case circumstances, the unpaid tax amount, and the taxpayer’s behavior (e.g., whether the error was self-reported or discovered during an audit).
- Cumulative Sanctions. The additional tax, interest, and penalty may all apply at the same time. This makes late adjustments a potentially costly mistake, especially in cases involving large amounts or repeated non-compliance.
Jak finanční úřad sleduje neuhrazené závazky podle § 74b ZDPH
Zavedením § 74b ZDPH došlo k výraznému zpřísnění kontroly ze strany finančních úřadů. Daňová správa má k dispozici několik nástrojů, pomocí kterých rychle zjistí situace, kdy byl uplatněn odpočet DPH, ale k platbě nedošlo:
- Křížová kontrola (křížové porovnání). Automatické porovnání údajů dodavatele a odběratele. Pokud dodavatel neuvádí přijetí platby, zatímco odběratel nadále uplatňuje odpočet, vznikne nesoulad. Ten je zachycen v daňovém systému a může vést k výzvě nebo kontrole.
- Kontrolní hlášení (KH). V kontrolních hlášeních jsou uvedeny detailní informace ke každé faktuře – DUZP, částka, kód plnění atd. Finanční úřad vidí, jaké odpočty byly uplatněny, a může vyhodnotit, zda odpovídají reálným platbám. Opravy odpočtu se značí písmenem „P“ – jeho absence v případech, kde měla být oprava provedena, slouží jako spouštěč kontroly.
- Sledování platebních toků. Porovnání dat od různých subjektů (dodavatel, odběratel, bankovní výpisy) umožňuje zjistit, zda k úhradě skutečně došlo. Pokud se údaje rozcházejí – například odběratel deklaruje platbu, ale dodavatel nic neobdržel – je subjekt automaticky zařazen mezi rizikové k podrobnější kontrole.
Tyto mechanismy fungují ve vzájemné kombinaci. Od roku 2025, kdy se oprava odpočtu při neuhrazené faktuře stala povinnou, se výrazně zvýšil zájem daňové správy o tuto oblast. Nesrovnalosti v uplatnění § 74b jsou proto rychle odhalitelné a pravděpodobnost kontroly se výrazně zvyšuje.
Increased Risk of Tax Audits
Since the introduction of § 74b of the Czech VAT Act (ZDPH), the tax authorities have significantly intensified their focus on unpaid obligations. The accuracy of VAT deduction adjustments is now viewed not only as a technical aspect of tax reporting but also as an indicator of a company’s payment discipline.
Tax inspectors pay particular attention to businesses that:
- Frequently delay invoice payments — consistent overdue liabilities (závazky po splatnosti) are seen as a red flag for potential non-compliance;
- Accumulate large amounts of unpaid obligations — this suggests that required adjustments under § 74b may have been missed or handled incorrectly;
- Show recurring discrepancies in control statements (kontrolní hlášení) — mismatches between supplier and customer data raise concerns that the company is misreporting the flow of obligations and VAT deductions.
As a result, § 74b has become a key element in VAT audits, as it directly reflects the economic reality of transactions — specifically, whether payments were actually made and when. For the tax authorities, this is a relatively straightforward way to identify inconsistencies between claimed VAT deductions and actual payment behavior. Consequently, businesses that ignore this rule face a significantly higher risk of unannounced audits.
How to Minimize the Consequences if an Error Has Already Occurred
If a VAT adjustment under § 74b ZDPH was not made on time, it’s important not to ignore the issue but to act promptly to correct it. The recommended steps are as follows:
- Identify the Unjustified VAT Deduction. Review all unpaid and partially paid invoices and compare their payment due dates (splatnosti) with the 6-month period outlined in § 74b. Determine which deductions were retained without legal basis and must be returned.
- Submit a Corrected VAT Return. File an amended VAT return for the tax period in which the obligation to adjust the deduction should have arisen. In the revised return, reflect the reduction of the VAT deduction for the affected amounts and submit it to the tax office.
- Prepare Supporting Documentation and Explanation
It’s advisable to document the reason for the error (e.g., lack of a register of overdue liabilities or incorrect tracking of payment deadlines). Include internal calculations, bank statements, and other supporting documents that prove the correction was made and the underpaid VAT has been settled. - Establish Internal Controls. Improve your internal systems: maintain a register of overdue liabilities (závazky po splatnosti), automate payment deadline tracking, and monitor partial payments. This will help prevent similar errors in the future.
The sooner the taxpayer identifies and corrects the error voluntarily, the lower the potential consequences. Tax authorities generally view timely self-correction more favorably than violations discovered during audits. Voluntary payment of the additional VAT and late payment interest demonstrates good faith and may result in avoiding further penalties beyond statutory interest.
When You Can Avoid a Fine: Dobrovolná Náprava (Voluntary Correction)
Dobrovolná náprava, or voluntary correction, refers to situations where the taxpayer independently discovers a violation and submits a corrected VAT return before the tax authority initiates any audit or control procedures. This proactive approach significantly reduces the risk of penalties.
The chances of avoiding sanctions are highest when:
- The corrected VAT return is submitted before an audit begins – If the taxpayer corrects the declaration in time, the tax office usually sees this as a sign of good faith and compliance.
- The error is identified by the taxpayer, not by a tax inspector – Voluntary disclosure and willingness to correct the mistake are viewed as mitigating factors.
- Documents and explanations are provided showing that the mistake was technical or due to a lack of internal controls, not an intentional attempt to hide tax obligations.
The key principle: the earlier a taxpayer corrects their VAT return and resolves the issue, the greater the chance of avoiding penalties. If the error is discovered by the tax authority during an audit, the likelihood of escaping fines drops considerably.
In this context, timely dobrovolná náprava remains the most effective way to minimize the consequences of non-compliance with § 74b ZDPH.
How to Avoid Fines and Tax Reassessments Under § 74b ZDPH
Failure to timely return the VAT deduction under § 74b ZDPH is not a mere technicality—it is a violation with direct financial consequences, including tax reassessments (doměrek DPH), interest on late payments (úrok z prodlení), and potential fines (pokuta). In practice, these issues typically arise not from complex transactions, but from basic errors—such as incorrect payment due dates (splatnost), lack of a proper registry of overdue liabilities (závazky po splatnosti), ignoring partial payments, or failing to track fragmented transactions.
The only reliable way to avoid penalties and reassessments is to implement a systematic internal control process for unpaid invoices and to timely adjust VAT deductions as required. The more accurate and disciplined a taxpayer is in following the provisions of § 74b, the lower the risk of costly errors during a VAT audit.
Professional Support with VAT and § 74b ZDPH
Venera Service Delivery s.r.o. helps businesses establish effective VAT control and mitigate risks associated with the implementation of § 74b ZDPH. We offer comprehensive support—from setting up internal tracking systems to accurately calculating and reporting adjustments in your tax filings.
If you’re uncertain how to handle partial payments, return VAT deductions on time, or reclaim them after late payments—our VAT specialists will help you build a reliable compliance framework and protect your company from reassessments and penalties.