January VAT news

VAT Rates for public transport, general reverse-charge regime directive or surprising rules of the Court of Justice of the European Union. These are January VAT news.

VAT Rates for public transport
The VAT rate for public transport (trains, buses, cableways) is to be reduced from 15% to 10% with effect from 1 February 2019.

General reverse-charge regime directive
In late 2018, a directive was ultimately approved, allowing EU Member States to generally apply the reverse-change regime to the local supplies of goods and services for a temporary period provided that specific conditions have been met. The Czech Republic has already applied for this option in a formal manner with the aim of introducing this tax treatment from mid-2020.

Court of Justice of the European Union
In judgments C-552/17 Alpenchalets Resorts and C-422/17 Skarpa Travel, the Court of Justice of the European Union defined surprising rules for applying a special scheme to a travel service. Apparently, the Czech VAT Act partially departs from those rules (taxation of received advances) but, partly, it may also be construed in line therewith (applying the special scheme to the purchase and sale of accommodation without supplementary services).

The article is part of dReport – January 2019, Tax news; Grants and investment Incentives.

SDEU Indirect Taxes VAT dReport newsletter

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