News in issuing a tax document from a received advance payment

In June, a so-called tax package was adopted, with approved changes to the VAT Act in force from 1/1/2019.

The regulation of the summary tax document was also modified. This change will help in issuing a tax document for any transaction carried out for which an advance payment was received.

A new rule for determining the obligation to declare tax on delivery of goods and provision of services has been effective since 1/7/2017. This regulation is also related to the conditions for issuing a summary tax document.

A summary tax document now cannot be issued as a tax document for a received advance payment together with the statement of the transaction carried out. The tax document for the received advance must be issued separately, within 15 days from the date of receipt.

As part of the tax package, Section 31b of the VAT Act was amended and, from 1/1/2019, it will be possible to issue a summary tax document for the transaction carried out and the payment received in one month.


A domestic monthly VAT payer has a contract with a company based in the Czech Republic for delivery of goods to be billed on a continuous basis. On 5 June, the company received an advance payment of CZK 20,000. The goods were delivered on 25 June.

Issuing documents under the current wording of the law:

The domestic payer must issue a tax document within 15 days from the date of receipt of the advance, i.e. by 20 June. Based on this tax document, the customer may claim VAT deduction. Within 15 days from the chargeable event, the domestic payer must also issue a tax document for delivery of goods, stating the received advance and the VAT paid, i.e. by 10 July.

Issuing documents after the adoption of the amendment from 1/1/2019:

Under the amendment to Section 31b, due to the fact that the acceptance of an advance and the chargeable event occurred in one month, it will be possible to issue one summary tax document within 15 days from the end of the calendar month in which the payment was received or the chargeable event occurred.

However, it should be verified whether the VAT payer is obliged to declare tax on the received advance. For example, if a domestic payer sells goods to a German company registered for tax purposes in Germany, the domestic payer will not issue a tax document upon receipt of an advance payment, but when the goods are delivered, i.e. when the chargeable event occurs.

Act No. 235/2004 Coll., on value added tax General Financial Directorate’s information on the application of the provisions of Section 20a of the VAT Act


Subscribe to our newsletter

By pressing Subscribe you consent to our data processing terms