Legislation enacted in the Czech Republic requires businesses and entrepreneurs to comply with rules for mandatory electronic reporting of sales (in particular, businesses that were previously exempted from these requirements will be subject to these rules). The last step of the phased-in compliance with the requirements for mandatory electronic reporting of sales is expected to begin in May 2020.
Catering services, selected services with a high degree of human labor, and e-books are to be re-classified under the group of services and goods subject to value added tax (VAT) at a rate of 10%. The effective date of this amendment, however, depends on the commencement of the last phase of the electronic reporting of sales.
Read an October 2019 report prepared by the KPMG member firm in the Czech Republic
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