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Czech Republic: Electronic reporting of sales and VAT proposals

Czech Republic: Electronic reporting of sales

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).


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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

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