1.8.2008
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News
Draft Amendment to the VAT Act
Pursuant to our information in the previous issue of Tax News, the Government presented a draft VAT Act to the Parliament of the Czech Republic. This long-prepared amendment primarily harmonizes the provisions of the Czech VAT Act with the provisions of Directive 2006/112/EC (the so-called Sixth Directive Recast) and provides suggestions for simplification and improvement of certain other provisions.
The most significant changes are as follows:
- The tax may be reduced if the taxpayer applies a wrong rate or tax exemption.
- Adjustment to definition of turnover – the operating business should be the decisive criterion for inclusion into turnover and not the manner of accounting on a particular transaction.
- The accounting terms “revenue” and “income” should be replaced by the term “fee” (or “consideration”) due to the said adjustment to definition of turnover.
- The place of supply for services to foreign parties operating a business (i.e. not only an entity registered for tax in another member state) should be determined pursuant to the registered office or principal place of business of the recipient of the service.
- The amendment suggests that rules for calculation of the factor reducing the input tax deduction be changed.
- The date of taxable supply for real estate transfers should be changed to the date on which the real estate is released to the transferee.
The amendment should take effect on 1 January 2009.
Other articles
28.5.2025
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News
Advising GRIDARCH a.s. on the Sale of Land in the Ostrava Airport Multimodal Park
KSB’s team (Jiří Horník, Jakub Porod, Jakub Mehl) provided legal counsel to GRIDARCH a.s. in connection with the sale of land located in the Ostrava Airport Multimodal Park (OAMP), which is being developed into an industrial zone with logistics facilities. The purchaser of the 110,000 sqm of commercial land was EQT Exeter.
20.5.2025
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News
With deep sorrow, we announce the passing of JUDr. Alexandr Kocián, one of the founders of our firm.
e was not only an icon of the legal profession in Karlovy Vary and a respected lawyer, but also an inspiring colleague, a mentor to an entire generation of our attorneys, and, last but not least, a man with a sense of humor who always spread good cheer.
