As the discussion of the technical amendment to the VAT Act has been postponed, it may be expected that the relevant changes (eg, in respect of tax base corrections, VAT reduction in the event of irrecoverable receivables, taxation of bonuses to statutory executives and members of statutory bodies, differentiation of financial and operating leases or taxation of vouchers for the purchase of goods/services) will come into effect on 1 April 2019 at the earliest.
What is more, our information suggests that some of the proposed articles of the amendment are additionally anticipated to be modified in the second reading (eg, the taxation of bonuses to statutory executives and members of statutory bodies should be revisited). Therefore, it is difficult to predict to what extent the VAT Act will be amended.
The amendment should be debated by the Chamber of Deputies in the first reading in late October at the earliest. A similar schedule also applies to the amended Electronic Sales Records Act, based on which the application of a 10% VAT rate to draught beer is proposed.
The article is part of dReport – November 2018, Tax news; Grants and investment Incentives.
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