Tax Alert
15.11.2011Company: Deloitte
The Chamber of Deputies adopted an amendment to the VAT Act, based upon which the VAT rate is expected to be increased from 10% to 14% effective 1 January 2012
The Chamber of Deputies adopted an amendment to the VAT Act, based upon which the VAT rate is expected to be increased from 10% to 14% effective 1 January 2012. Other major changes that are expected to be brought by the amendment from 1 January 2012 are as follows:
- A large amendment of rules for the issuance of summary corrective tax documents should take place;
- The condition regarding the obligation to include selected data, such as the VAT number and data essential for the calculation of VAT, on the tax document for the purposes of applying the VAT deduction should be eliminated;
- A prolongation of the deadline for adjusting of the input VAT deduction with regard to the technical improvement of real estate from five years to ten years has been proposed; and
- The customer could be liable for VAT if he effects payments via bank transfer to the account of the taxable supply's provider kept outside of the Czech Republic.
The amendment must still be signed by the President. We will keep you informed on further development.
If these issues relate to your company, we would be happy to provide you with more detailed information. Feel free to contact us at any time.
