Czech Republic: VAT changes in 2022

What’s new and what remains unchanged in 2022

What’s new and what remains unchanged in 2022

Following the energy crisis, the previous finance minister decided to waive value added tax (VAT) on electricity and gas supplied in November and December 2021, or on the advance payments received during this period. The current government decided not to extend the waiver. Thus, starting from 1 January 2022, these supplies are again subject to tax at 21%.

The finance ministry also did not extend the waiver for filter half masks and respirators of protection class FFP2 and higher, which therefore ended on 31 December 2021. A VAT waiver continues to apply to diagnostic medical devices for coronavirus (COVID-19) testing and to vaccines until 31 December 2022.

Tour operators are facing changes. For instance: the elimination of the possibility to calculate VAT on travel services provided from the aggregate data for the taxable period, or the introduction of the duty to pay VAT on advances received for travel services. Read TaxNewsFlash

From January 2022, a simplified Intrastat reporting is being introduced. To use it, the entity must not have exceeded the limit of CZK 20 million in 12 consecutive months in terms of receipts or dispatches of goods from or to another EU member state. The advantage is that under the simplified reporting, Intrastat data may only be reported once a year. However, selected commodities (listed in the Czech Statistical Office’s notice) cannot be reported under the simplified regime.

What remains unchanged for the calendar year 2022:

  • VAT rates, except for some healthcare items reclassified to a reduced rate
  • The amount of turnover for VAT registration remains at CZK 1,000,000; an increase to CZK 2,000,000 will only occur in subsequent years
  • Electronic reporting of sales: The duty to electronically report sales remains suspended until 31 December 2022. A decision on its full elimination must be taken in the course of 2022.

Read a January 2022 report prepared by the KPMG member firm in the Czech Republic


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