Law  Tax 

Ministers have Approved a Proposed Act in the Event of a No-deal Brexit

The proposed act that relates to UK nationals living in the Czech Republic has been approved by the government and sent to the parliament. The government will require that the deputies approve the act in a fast-track procedure during a single reading.

The proposed act introduces a transitional period until the end of 2020, during which the UK nationals would, in the event of a “hard Brexit” – ie, if the United Kingdom left the European Union with no deal in late March 2019 – retain their rights in the Czech Republic as EU nationals in respect of permanent residence permits, entering into marriage, applying for citizenship, supplementary pension insurance, work permits and recognising qualifications. The proposed act stipulates that UK nationals wishing to lawfully reside in the Czech Republic during the transitional period should apply with the Czech Ministry of the Interior (the Asylum and Migration Policy Department) for a certificate validating their temporary residence in the Czech Republic no later than on 29 March 2019.

The United Kingdom will leave the European Union on 29 March, following a deal with the EU, for which Prime Minister Theresa May has yet to find sufficient support. British Members of Parliament are set to vote about the Brexit deal on 15 January.

We will keep you informed as the situation develops.

United Kingdom Theresa May Brexit EU

VAT Control Statement has been in operation for almost three years. Did it prove itself in practice?

When the VAT Control Statement was introduced in 2016, many feared the changes that were linked to this new tax report. The transition to the VAT Control Statement that each VAT payer must provide along with the VAT return required a re-arrangement of systems, an adjustment of the accounting policies and an adjustment of the relations with business partners. Now, almost three years later, we can say that the VAT Control Statement partially met the expectations of the professional public. “First of all, we expected an acceleration in the course of inspections because the Tax Administrator has most of the data available from the VAT Control Statement and it was fulfilled,” said Jaroslav Beneš, director of the Tax Advisory team at Deloitte. 

14. 1. 2019