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
23.10.2025
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News
Kyberbezpečnost nově: tisíce firem čekají nové povinnosti. Iniciativa je plně na podnikateli.
Od 1. listopadu 2025 čeká tisíce firem v České republice napříč různými odvětvími zásadní změna v oblasti kybernetické regulace. Nový zákon o kybernetické bezpečnosti spolu s řadou doprovodných právních předpisů totiž výrazně rozšiřuje okruh subjektů, na které bude dopadat. Cílem regulace je zvýšit odolnost technické infrastruktury vůči kybernetickým hrozbám. Místo úzkého okruhu pouze klíčových institucí se nová pravidla budou vztahovat na široké spektrum firem a organizací, které poskytují tzv. regulované služby. Jde o služby zásadní pro fungování společnosti a státu, jejichž narušení či výpadek by mohly mít negativní dopady na bezpečnost státu, ekonomickou stabilitu a každodenní chod společnosti.
16.10.2025
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News
KŠB becomes the first major independent law firm on the Czech market to implement the Legora AI platform into its practice, symbolically connecting Czech law with global AI innovation
KŠB continues its tradition of being a pioneer of innovation in the field of legal services. As the first major independent law firm on the Czech market, KŠB has started to utilize Legora, an efficient AI assistant developed specifically for legal professionals, a step which will further strengthen our long-term vision – to combine first class legal expertise with modern technologies, thereby allowing us to deliver top-quality legal services to clients even more efficiently.
