The Czech tax authorities clarified that compensation for stolen goods is subject to VAT only if ownership rights are transferred and the compensation directly relates to the goods.
The Czech Republic’s Coordination Committee of the Chamber of Tax Advisors and the General Financial Directorate (GFD) released a discussion paper stating that the compensation for stolen goods is subject to VAT only if the right to dispose of the goods as an owner is transferred and the compensation directly relates to the goods.
For compensation to qualify as a supply of goods, it must be agreed whether the right to dispose of the goods was transferred and if the compensation directly relates to the delivery of the goods.
