The Ministry of Finance released for public comments a draft amendment to the law on the electronic reporting of sales and to the value added tax (VAT) law. In general, the effective date would be 1 January 2019 (except for certain provisions).
The proposals are in response to a court judgement that excluded payments by debit or credit cards from the electronic reporting of sales (ERS) regime. One change aims to unify the start of the third and fourth phase of ERS. Businesses under these two phases would begin electronic reporting of sales from the third month after the effective date of the proposed amendment (it is anticipated that the last phases of ERS would be launched on 1 March 2019). The amendment also would expand the range of sales not subject to electronic reporting.
Concerning VAT, the proposal would move certain services and goods to the second “reduced VAT rate” category (10%). These would include catering services, but not sales of tobacco products and alcoholic beverages (but it is proposed to transfer draught beer to the 10% VAT rate category). Specific crafts and professional services, water and sewerage fees, and cut flowers would also be subject to the lower VAT rate.
Read an April 2018 report prepared by the KPMG member firm in the Czech Republic
The KPMG logo and name are trademarks of KPMG International. KPMG International is a Swiss cooperative that serves as a coordinating entity for a network of independent member firms. KPMG International provides no audit or other client services. Such services are provided solely by member firms in their respective geographic areas. KPMG International and its member firms are legally distinct and separate entities. They are not and nothing contained herein shall be construed to place these entities in the relationship of parents, subsidiaries, agents, partners, or joint venturers. No member firm has any authority (actual, apparent, implied or otherwise) to obligate or bind KPMG International or any member firm in any manner whatsoever. The information contained in 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.