Czech Republic: Temporary reduction in fuel excise duties, VAT treatment of fuel cards, interest on retained VAT deductions

Reports about recent excise and value added tax (VAT) developments

Reports about recent excise and value added tax (VAT) developments

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

  • Temporary reduction in excise duties on diesel oil and unleaded petrol: To mitigate the effects of the energy crisis on fuel prices, the government has proposed temporarily reducing the excise duties on diesel oil and unleaded petrol by CZK 1.50 per liter from 1 June to 30 September 2022. The excise duty on a liter of petrol would thus fall to CZK 11.34 (from CZK 12.84), and for diesel oil to CZK 8.45 (from CZK 9.95). Read a May 2022 report
  • VAT treatment of fuel cards: The VAT Act does not offer any detailed guidance on the correct application of VAT to fuel cards. The VAT treatment of these transactions has always been based on general principles and on interpretations of international case law. Recently, the European Commission's VAT expert group has commented on this topic. Read a May 2022 report
  • Reduction of interest rate on long-term retained VAT deduction held unlawful: The Supreme Administrative Court held unlawful the tax administrator’s reduction of the interest rate on a long-term retained VAT deduction. The court found that taxpayers are entitled to interest at a rate 12 percentage points higher than the one applied by the tax administrator. Read a May 2022 report

 

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