Czech Republic: VAT considerations regarding donations to Ukraine, leaseback transactions, one-stop-shop (OSS) regime

Recent value added tax developments

Donations to Ukraine, leaseback transactions, one-stop-shop (OSS) regime

The KPMG member firm in the Czech Republic has prepared reports about the following value added tax (VAT) developments (read more at the hyperlinks provided below).

  • Donations to Ukraine: The General Financial Directorate issued summary information on the VAT implications of making donations to support Ukraine. While for income tax, Czech laws can be amended to respond flexibly, the situation is rather more complicated for VAT, as the possibilities to deduct VAT are based primarily on harmonised EU legislation. Read an April 2022 report
  • VAT treatment of leaseback transactions: Within the Coordination Committee of the Czech Chamber of Tax Advisors and the General Financial Directorate, the financial administration confirmed that they will start applying the Court of Justice of the European Union’s interpretation to leaseback transactions, so that they now will be regarded as single transactions from a VAT perspective. Read an April 2022 report
  • One-stop-shop to simplify collection of VAT on cross-border supplies of goods: The Council of the EU and the European Commission are preparing further steps on VAT to simplify cross-border transactions and the import of goods into the EU for end consumers. The digitisation of VAT reports, electronic invoicing and harmonisation in other areas are also on the way. Amendments to the VAT directive are expected to be published later this year, with implementation in individual Member States planned for late 2023 or early 2024. Following the Economic and Financial Affairs Council of the EU (ECOFIN) meeting in March 2022, the European Commission has prepared an extension of the one-stop-shop (OSS) as the preferred option to simplify the collection of VAT on cross-border supplies of goods.  Read an April 2022 report

 

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.