Other changes

Act on Employee Accident Insurance – date of effectiveness deferred until January 2010

The original intention was that the above Act would come into effect in January 2008. The effective date has been deferred until January 2010. The new Act repeals mandatory employer insurance by liability to employees for accidents at work or occupational disease. This obligation will be replaced by a system of social accident insurance with its own social payments, thereby transferring liability for implementation of accident insurance to the state. The time limit for compliance with the statutory obligations binding on employers under the new Act, together with the effective date of the Act, have been deferred.

Proposed changes to Czech VATA

Amendments to Czech VATA are currently being drafted to ensure clear alignment of Czech VATA with Directive 2006/112/EC and the past decisions of the European Court of Justice. One change is be the opportunity to rectify the applicable VAT by reducing it from a higher to a lower rate, currently not an option available under VATA, which simply provides for the obligation to rectify the VAT rate from a lower to higher rate.