Taxes
Upcoming tax changes: an overview
The new government and chamber of deputies have begun another four-year legislative cycle in which they will try to push through their agenda. The implementation of several EU directives may bring about important changes, especially in direct taxes.…
Coordination Committee: How to determine VAT treatment of superficies payments upon…
The Coordination Committee of the General Financial Directorate and the Chamber of Tax Advisors concluded that the VAT treatment of superficies payments paid on a recurring (e.g., monthly) basis, does not change over time.
Changes in VAT rate on supply of medical devices
The amendment to the VAT Act in effect from 1 January 2022 narrows the scope of medical devices subject to the reduced VAT rate. If you buy or sell medical devices, we recommend you check whether this amendment also applies to your goods.
Economic turmoil also affecting transfer prices
Inflation is one of the main economic issues for 2022. The impact of high input prices and disrupted supply chains are other factors businesses must cope with. But there are also other adverse factors. The slowing economy has also revealed new…
VAT from January – what’s new and what remains unchanged?
This new year brought only a few changes: the end of the waiver of VAT on supplies of electricity and gas; major differences in VAT for tour operators; and simplified Intrastat reporting. In contrast, the amount of turnover for statutory VAT…
New GFD information on claiming tax losses
At the end of 2021, the General Financial Directorate issued its information on the application of a special provision on claiming tax losses as an item deductible from the tax base under Section 38zh of the Income Tax Act.
Coordination Committee: Tax base correction upon payment of bonuses to insurance…
Within the Coordination Committee (No. 586/15 September 2021), the Chamber of Tax Advisors and the General Financial Directorate (GFD) discussed the issue of correcting the tax base for payments (bonuses) paid in arrears to health insurance…
What’s new in tax for employees in 2022?
With the new year come changes in the taxation of employees and social security and health insurance contributions. The basic tax relief per taxpayer has increased and the limit from which wages are taxed at 23% under progressive income taxation has…
Reintroduction of the compensation bonus for entrepreneurs
Considering the renewed spread of the SARS-COV-2 virus and new restrictive measures that may negatively impact business operations, the chamber of deputies approved the Compensation Bonus Act for 2022 in a fast-track legislative procedure. The bill…
New VAT rules for tour operators from 2022
Tour operators will encounter significant changes in the VAT area as of 1 January 2022. From that date, tour operators should start declaring VAT on advances received and should not calculate VAT based on aggregated monthly data. Furthermore,…
GFD clarifies procedure regarding VAT waiver for electricity and gas
According to the General Financial Directorate (GFD), the waiver of VAT shall apply to electricity intended for any purpose. As for gas, the waiver shall apply both to supplies through the distribution system, and to tankers and cylinders. The GFD…
Deputies do not approve digital tax
In the just-ended parliamentary term, the Czech Chamber of Deputies did not approve the bill on a digital service tax. Hence the bill would have to go through the entire legislative process again should the new government want to introduce a digital…