Czech VAT Changes

Czech Republic: Amendments to the VAT Act effective from 1/1/2015

The following changes have been made to the VAT Act:

Tax Rates
A second reduced tax rate of 10% has been introduced. This cover essential goods such as books, pharmaceuticals and baby nutrition.

Local Reverse-Charge
The local reverse-charge mechanism has been extended to other types of goods and services (e.g. mobile phones, laptops, game consoles) if the tax base exceeds CZK 100 thousand per tax document and with no limit in case of certain cereals and industrial crops, raw or semi-processed metals, and allowances for greenhouse gas emissions etc. Local reverse charge mechanism should be applicable also in case of sale of immovable property when the VAT payer opts for taxation even if the sale could be VAT exempt.

Mini-one-stop-shop (MOSS)
This was introduced with the change of the place of supply with regards to electronically supplied services, which is now the customer’s state of consumption. As discussed in a previous blog, this MOSS eliminates the necessity to register in Continue Reading