A legislative amendment to the Czech Republic’s value added tax (VAT) law has been submitted to the Chamber of Deputies. The amendment would implement in 2020 measures referred to as the VAT “quick fixes.”
The European Council earlier in 2019 formally approved proposals for four VAT “quick fixes” to simplify international trade. The VAT “quick fixes” are to be effective beginning 1 January 2020, and will be expected to have considerable implications for businesses trading in international goods. The VAT “quick fixes” concern the following four changes:
The amendments in the Czech Republic would implement the EU “quick fixes” rules.
There have been concerns expressed by various EU Member States about two areas under the “quick fixes”—natural losses in consignment (call-off) stock and the determination of a fixed establishment for VAT purposes as a result of consignment stock arrangements.
Read an October 2019 report prepared by the KPMG member firm in the Czech Republic
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