5 Major Developments in Czech Republic

5 Major Developments in Czech Republic

• Changes in the taxation of individuals and new rules for VAT
• Application of VAT to fuel cards
• Senate Approves Increased VAT Registration Threshold, Windfall Tax, and Other Measures
• Pitfalls of cancelling VAT registration
• Changes in the taxation of individuals and new rules for VAT

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DAC7

• Czech Republic Implements DAC7

• DAC7: Implications of new obligations for digital platform operators

• DAC 7: New rules for digital platforms expected to apply as from 1 January 2023

Deduction (Input Tax Credit)

• Taxpayer entitled to deduct VAT on supply within fraudulent transactions chain

ECJ (European Court of Justice)

• ECJ C-676/22 (B2 Energy) – Questions – Proof of recipient of the goods to apply Exemption for Intra-Community supplies

• Flashback on ECJ Cases – C-572/07 (RLRE Tellmer Property) – Rental of an immovable property and the service of cleaning the common parts are separate services

• ECJ C-676/22 (B2 Energy) – New VAT Case, No further details known yet

Exemption

• ECJ C-676/22 (B2 Energy) – Questions – Proof of recipient of the goods to apply Exemption for Intra-Community supplies

• Flashback on ECJ Cases – C-572/07 (RLRE Tellmer Property) – Rental of an immovable property and the service of cleaning the common parts are separate services

• Cancellation of the VAT exemption on the supply of gas and electricity

Environmental Tax

• Plastics and Packaging Laws in Czech Republic

Fraud/Tax Evasion

• Taxpayer entitled to deduct VAT on supply within fraudulent transactions chain

• Reverse charge regime

Legislative Change

• Threshold for mandatory VAT registration to increase

Liability (Reverse Charge/Withholding)

• Reverse charge regime for the supply of selected commodities (mobile phones, video game consoles or metals)

• Threshold for mandatory VAT registration to increase

Rate

• Changes in the taxation of individuals and new rules for VAT

• Amendment: New rules for VAT – VAT registration threshold & reduced VAT rate for fruit/vegatables

• VAT registration limit from the current CZK 1 million to CZK 2 million and reclassify some foodstuffs and beverages from the tax rate of 15% to 10% or 21%

• Cancellation of the VAT exemption on the supply of gas and electricity

Registration

• Update – Czech Republic Publishes Law Providing Increased VAT Registration Threshold

• Information from the GFR to increase turnover for VAT registration

• Pitfalls of cancelling VAT registration

• VAT registration from the current CZK 1 million to CZK 2 million still under discussion

• Amendment: New rules for VAT – VAT registration threshold & reduced VAT rate for fruit/vegatables
• VAT registration limit from the current CZK 1 million to CZK 2 million and reclassify some foodstuffs and beverages from the tax rate of 15% to 10% or 21%

• Threshold for mandatory VAT registration to increase

• Amendment to the VAT Act – increased limit for registration

Reporting/Compliance

• Change of the deadline for submitting a subsequent VAT control statement at the request of the tax authority

• Country VAT Guide: Czechia

• Senate Approves Increased VAT Registration Threshold, Windfall Tax, and Other Measures

• Penalty for filing VAT ledger statement for incorrect taxable period struck down

• VAT Guide: VAT in the Czech Republic

• Czech VAT guide

SAF-T (Standard Audit File for Tax)

• Change of the deadline for submitting a subsequent VAT control statement at the request of the tax authority

SME (Small and Medium Enterprises)

• Pitfalls of cancelling VAT registration
• Changes in the taxation of individuals and new rules for VAT
• VAT registration from the current CZK 1 million to CZK 2 million still under discussion

Supply of Goods

• Application of VAT to fuel cards

Supply of Services

• Application of VAT to fuel cards

Tax Authorities/Penalties

• Senate Approves Increased VAT Registration Threshold, Windfall Tax, and Other Measures

• Penalty for filing VAT ledger statement for incorrect taxable period struck down