Impact of the change in the definition of net turnover on the tax return annex

The amendment to Act No. 563/1991 on accounting changed the definition of net turnover. As of 1 January 2024, turnover represents only revenue from the sale of products, the sale of goods and the provision of services. This has caused a discussion on how to report net turnover in the profit and loss account for the comparative accounting period, i.e. 31 December 2023, in the financial statements as at 31 December 2024. The Ministry of Finance has therefore issued a statement that, due to this change, net turnover for the previous accounting period no longer needs to be reported in the profit and loss account in the financial statements prepared for 2024.

As a result, the Tax Administration has informed that the tax administrator's information system has been adapted and the EPO application now allows the net turnover to be omitted from the annex to the corporate income tax return.

Author: Sabina Horáková