The Government approved an amendment to the VAT Act with the proposed effective date from January 2019. Compared to the original wording, the change in the taxation of grants from public sources has been postponed so that the new rules will become valid only in 2021.
The same deferral is suggested for the prohibition on applying VAT to the lease of construction sites and construction premises originally intended for housing. The amendment will be assessed by the Chamber of Deputies as part of the next stage of the approval process. In addition, the Government of the Czech Republic approved the expansion of the 10% VAT rate to include selected supplies of goods and services that are currently subject to the 15% tax rate. This amendment has also been handed over to the Chamber of Deputies for consideration. At the level of EU legislation, certain changes that should have a significant impact on the method of functioning of intracommunity trade with goods will probably be postponed once again. At present, the suggested year of introduction of the changes is 2022.
The article is part of dReport – July 2018, Tax news; Grants and investment Incentives.
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