Uctovani dotace na zvysene naklady na energie

Booking of a subsidy for increased energy costs

We have informed you about the possibilities of applying for a subsidy for increased energy costs provided by the Ministry of Industry and Trade (MIT) e.g. HERE.

Now the Chamber of Auditors of the Czech Republic (CCA) has dealt with the accounting treatment of the revenue from this subsidy and published an opinion on this issue on its website. In particular, the question of the accounting period in which the entitlement for this subsidy should be recognised was addressed - the full opinion is available HERE.

In the opinion, the CCA is inclined to the view that the revenue should be accounted for in the year in which the entity receives the decision granting the subsidy. However, it also states that, in the case of this particular subsidy, it is possible to recognise the revenue in the year in which the application is submitted, provided that the conditions specified in the CCA opinion are met. In particular, the following conditions:

• the application submitted by the end of 2022 contains all the elements required by the MIT and, at the same time, the information complies with the requirements and conditions of the subsidy programme;
• the entity is able to demonstrate that all conditions required by the subsidy programme have been met - we have informed you about the parameters of the final version of the Call in our Grant Alerts.

For the sake of completeness, we would like to add that the opinion is directly linked to the conditions of this subsidy and its conclusions are not legally binding.

If you have any questions about the accounting for subsidy revenue and its potential practical implications, please contact the authors of this article or the EY tax team with whom you regularly work.

Authors:

Ladislava Zamazalová
Karolína Mikešová