VAT news [May 2026]
The Court of Justice of the European Union issued several noteworthy decisions in the area of VAT. In one case concerning transfer pricing, it addressed the tax treatment of adjustments resulting from subsequen…
New limits for small-scale public contracts: What does the amendment to to the Public Procurement Act bring?
On March 19, 2025, Act No. 69/2025 Coll. was published in the Collection of Laws, which, among other things, brings significant changes to Act No. 134/2016 Coll., on Public Procurement. The amendment, which comes into effect on April 3, 2025, offers procurers the long-awaited increase in financial limits for small-scale public contracts.
Higher limits, greater flexibility
The key change is the increase in threshold values within which contracts can be executed in a simplified manner without the need for formal procurement procedures according to the Public Procurement Act. These are so-called small-scale contracts (VZMR), whose limits are increased as follows:
- Supplies and services: from the current 2 million CZK to 3 million CZK without VAT
- Construction work: from the current 6 million CZK to 9 million CZK without VAT
This amendment reflects the current market price trends and offers public contracting authorities increased flexibility in the awarding of small public contracts.
What does this mean in practice?
Procurers following the Public Procurement Act no longer need to conduct classical procurement procedures for contracts with a presumed value up to the newly established VZMR limits. It is only necessary to adhere to the principles according to Section 6 paragraphs 1 to 3 of the Public Procurement Act, i.e., the principles of transparency, proportionality, equal treatment, and prohibition of discrimination. This can be achieved through direct assignment or a closed invitation involving a selected circle of specific suppliers. Practically, this means a wider range of contracts can be awarded outside formal procurement processes, thereby simplifying and speeding up the entire process.
The changes are also reflected in the rules of public support providers and will therefore also affect a circle of procurers outside the Public Procurement Act regime. The Ministry of Industry and Trade is currently preparing updates to the Rules for Selecting Suppliers within the OP TAK program, and similar steps can be expected from other providers. For applicants and recipients of support from OP TAK, who are not subject to the Public Procurement Act regime, the new limits will be binding only after these updated program rules take effect. Based on available information, it is expected that in the case of OP TAK, the limits will even be increased beyond the scope of the actual amendment to the Public Procurement Act.
Recommendations for procurers
- Monitor updates to the Rules for Selecting Suppliers in various grant programs.
- Check internal directives and processes – it is advisable to align them with the new legal framework in a timely manner.
- Take advantage of the amendment to evaluate opportunities for more efficient contract awards within the new limit framework.
- In case of uncertainties, consult your procedures with public procurement experts to avoid the risk of grant reductions. Do not hesitate to contact specialists from Deloitte – we are happy to assist you not only with setting processes and strategies for awarding contracts in accordance with current legislation and grant provider requirements but also with their actual realization.
