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Czech Republic: VAT revisions included in legislation

Czech Republic: VAT revisions included in legislation

The Chamber of Deputies approved a bill to amend certain tax provisions, including the value added tax (VAT) law, with the amendments to be effective 1 April 2017.


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Among the legislative changes concerning VAT are the following items:

  • Rules for how to apply and settle input VAT deductions with respect to certain shortages, damage, destruction or theft of goods
  • Information about a taxable supply, to be known as of the date when an advance is received that gives rise to a VAT declaration before the supply is made  
  • Application of a local reverse-charge mechanism, relating to providing personnel for construction and assembly work and with respect to various forms of delivery of property
  • Introduction of an “unreliable person” concept and expansion of VAT liability when consideration is provided in a virtual currency
  • Revised definitions of “fixed assets” to include assets acquired through finance leases
  • Rules treating unit funds and investment fund sub-funds as entities subject to VAT
  • Measures concerning taxable supplies provided over a period longer than 12 months during which no consideration that would require a VAT declaration 
  • Provisions allowing interest on excess remittances of VAT when not refunded to the payer within a specified time frame 


Read a February 2017 report [PDF 249 KB] prepared by the KPMG member firm in the Czech Republic

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