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
The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organization. KPMG International Limited is a private English company limited by guarantee and does not provide services to clients. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 4366, 1801 K Street NW, Washington, DC 20006.