Czech Republic: Reduction of VAT, road tax rates (COVID-19)

Czech Republic: Reduction of VAT, road tax rates

The Chamber of Deputies (lower house) passed an anti-crisis tax legislative package—one that provides tax relief in response to the coronavirus (COVID-19) pandemic.


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The legislation is pending consideration by the upper house.

The legislation reflects various tax relief measures, including a proposed reduction of the value added tax (VAT) rate that is imposed on certain services as well as a reduction of the rate of the “road tax.”

  • A reduction of the VAT rate to 10% (from 15%) would apply to accommodation services, entrance fees for cultural and sports events, and sports centres (including ski lift passes), saunas, and other similar facilities.
  • For agricultural businesses, the deadline for filing a claim for refund of overpaid excise tax on “green diesel oil” would be shortened.
  • Concerning the road tax, the rates applicable to cars with a maximum permitted weight higher than 3.5 tons would be reduced by 25%.

Read a June 2020 report prepared by the KPMG member firm in the Czech Republic

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