With respect to the value added tax (VAT) rules, there is a new provision that allows buyers and sellers to agree to an allocation of the reverse charge mechanism, without regard to the value of the goods. This amendment is effective beginning 1 February 2016.
Previously, it was possible to apply the reverse charge mechanism only if the value of the goods or supplies did not exceed a threshold amount (CZK 100,000). The new measure no longer imposes this limit, provided that the agreement is in writing.
The amended measure also extends application of the reverse charge mechanism to deliveries of electricity and gas when the purchasers are traders of electricity or gas. For these purposes, a “trader” is not only persons purchasing electricity or gas primarily for re-sale (and whose own consumption of electricity or gas is immaterial), but also any other person whose principal activities are electricity transmission and distribution.
Read a February 2016 report [PDF 507 KB] prepared by the KPMG member firm in the Czech Republic
Other items discussed in this report concern:
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