Notification of the Finance Ministry29/10/09 / cata_tax-news

The tax entity choosing to apply the transport flat rate for calculation of its income tax base shall not be required to keep records (termed “drive logs”) documenting expenses incurred in connection with operation of a road motor vehicle. The application of the transport flat rate shall be at the discretion of the tax entity. The MF emphasized the rules for application of the cited transport flat rate and its consequences apply in the area of income tax, but the relevant amendment shall not affect the application of VAT. The same regime and rules apply to VAT as existed prior to the amendment allowing the choice of the transport flat rate for purposes of income tax. It applies that the payer is entitled to apply a claim to deduction if it receives taxable performance from another payer, uses such performance for its economic activities and documents it by a tax document. The payer must document its compliance to such conditions in tax proceedings. The use of a transport flat rate for purposes of income tax does not automatically mean the payer documented the use of transport for economic activities to raise a claim for deduction of VAT. The MF’s communication is published on its website (http://cds.mfcr.cz) in the section “Information for Users”, but it does not contain any reference number or state the person who issued it.