Tax 

What Is the Future of Electronic Sales Records?

During June, the Chamber of Deputies approved in the third reading an amendment to the Act on Sales Records. As such, the voting lasted several days because of more than 800 motions to amend. During July, the amendment was considered by the Senate, which dismissed it. The proposed amendment will thus be returned to the Chamber of Deputies.

The effective date of the amendment, or more precisely of its core part providing for extending the duty to record sales to the remaining payers, is postponed to the first day of the 7th calendar month following the date of the amendment being published in the Collection of Laws. The nearest ordinary meeting of the Chamber of Deputies is scheduled to take place in September 2019. Therefore, the question is when and in which wording the amendment is to be approved.

The current wording of amendment provides for the following:

  • Introducing the duty to record sales for the remaining payers (sale of own products, provision of services);
  • Ruling out the duty to record sales generated outside the Czech Republic;
  • New sales records exceptions for social services, visually impaired entrepreneurs, sale of freshwater fish from 18 to 24 December, pre-paid telephone cards as well as sales generated by air transportation and gambling;
  • Re-introducing the duty to include the tax ID number on receipts unless it includes the payer’s birth certificate number; and
  • Payers with annual sales up to CZK 600,000 may apply for recording sales in a paper form using a receipt block provided by the tax administrator.

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

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Tax 

The Supreme Administrative Court ruled on the moment on which an investment is initiated

The Supreme Administrative Court of the Czech Republic issued judgment No. 7 Afs 365/2018-62, which deals with the moment from which an entity is to capitalize the costs of acquisition into the value of the tangible and intangible assets. In terms of allocation of certain costs to the acquisition value of assets, the court held that it was not essential when the tax entity had formally approved the investment to be made but when it had objectively begun to invest even though it was not quite certain at that time that the investment would be completed successfully. 

22. 11. 2019
Tax 

What will 2020 bring in the area of VAT? Quick fixes already in January and a VAT decrease for selected supplies in May

One of the main topics of the traditional autumn seminar on value added tax, which is organised every year by Deloitte, were the new rules in the area of VAT, jointly referred to as “quick fixes”. Their primary purpose is to unify certain rules for cross-border transactions with goods within the European Union. What do they bring, specifically? How can preparations be made for them? 

22. 11. 2019