Czech Republic


VAT Remission for Gas and Electricity Supply

In connection with the Decision on VAT Remission for Gas and Electricity Supply based on the decision of the Czech Ministry of Finance published in the Financial Bulletin No. 34/2021 (hereinafter “Decision”), we would like to inform you about the related issues that may affect your enterprise in this context. This Decision affects not only […]

The new e-commerce regulation, the amendment of the VAT Act, has finally entered into force

Exactly three months after the date on which the Czech Republic became obliged to implement the e-commerce amendment in its legislative, it actually did so. As we already described in our newsletter from May this year, the e-commerce amendment sets forth new rules that will apply mainly to trading in the digital environment. According to […]

Planned amendment of the VAT Act – new regulation for e-commerce

On 5 May 2021, the Chamber of Deputies held the second reading of the government bill known as the “e-commerce amendment” (document no. 867), which EU Member States must implement in their legislation with effect from 1 July 2021. Even though the process is not yet finished, we would like to inform you about the […]

Doing Business in the EU after Brexit

As from December 31, 2020, the UK is separated from the EU. This has an impact on the tax and compliance position of EU based companies doing business in the UK and vice versa. Introduction While the mile-long lines of trucks have dissipated at ports, companies are waking up to less visible forms of friction […]

Tax Code Amendment Ultimately Not Adopted with Only Three Votes Short

We will have to wait a little bit longer because easier electronic communication with the Tax Office and management of our tax accounts is still to come. The Chamber of Deputies was only three votes short of adopting the amendment to the Tax Code. At the same time, however, the subtle extension of the deadline […]

Extraordinary tax measures in response to the spread of coronavirus in the Czech Republic II

Below is a list of the new series of measures relating to income taxes, VAT and real estate acquisition taxes which have already become available to all taxpayers, and of measures which will become effective as soon as the related Act is amended. 1. Already in effect: Prepayments on individual and corporate income tax due […]

VAT as a part of the real estate acquisition tax base – continued

As presumed in our previous newsletter, the case of the village of Střelské Hoštice continues with a rather nice surprise. This time, however, the surprise came from the tax administration itself. The tax administration published a new press release on 24 November 2011 in which it significantly expanded on its original statement of September 2017. More […]

Is VAT included in the real estate acquisition tax base?

The principle of the benefit of the doubt has helped many taxpayers to save on tax. However, the taxpayer must usually enforce the principle by legal action. This was the case of the village of Střelské Hoštice that has recently attracted much media attention. What was it about and what effects does it have on […]

New developments in VAT – General Financial Directorate’s notification regarding the new control report introduced with effect from 2016

The General Financial Directorate (“GFD”) published information about the VAT control report that is to be filed by taxpayers with the tax authority from January 2016. The information defines persons that must file the report, the mandatory form of the report, information that must be provided to the tax authority in the report and the […]