The Czech Ministry of Finance has presented the first proposed amendment to the VAT Act, which should (barring exceptions) become effective on 1 January 2019. The amendment is set to fully revise the rules for correcting the tax base or the possibility of decreasing VAT in respect of irrecoverable receivables. It introduces special treatment for taxing vouchers for the purchase of goods/services, thereby transposing the relevant EU Directive.
Additional transposition of EU rules includes the implementation of new processes for services provided electronically to non-taxable entities. The changes should also specifically affect the financial sector (a new definition of finance leases, application of exemptions to independent groups of entities) and the real estate industry (inclusion of certain work on the property in the compulsory/voluntary adjustment of tax deductions, impossibility of imposing tax on premises rented for housing purposes). Furthermore, the changes with general implications include a stricter approach to issuing tax documents and their delivery.
At present, comments on the amendment to the VAT Act made by experts as well as non-specialists are being processed. The Czech Ministry of Finance should subsequently address these and submit the amendment for the subsequent legislative process.
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