Share with your friends

Czech Republic: Proposed VAT rate reduction, certain goods and services

Czech Republic: Proposed VAT rate reduction

A draft proposal would amend the value added tax (VAT) law to address the treatment of payments made by debit or credit cards and the electronic reporting of sales, and to reduce the rate of VAT for certain goods and services.


Related content

The Constitutional Court issued a judgement that effectively excluded payments by debit or credit cards from the electronic reporting of sales. A proposed amendment would address this court decision.

Another proposal would make certain goods and services subject to the “second reduced” rate (10%) of VAT. These would include catering services (except for the sales of tobacco products and alcoholic beverages, but draught beer is proposed to be transferred to the 10% rate). Specific crafts and professional services, water and sewerage fees, and cut flowers would also be subject to the lower VAT rate. 


Read a May 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.

Connect with us


Want to do business with KPMG?


loading image Request for proposal