The changes regarding value added tax (VAT) effective in the Czech Republic from 1^st January 2015 are given below:

• The 10% reduced VAT rate will be applied to necessary baby nutrition, certain types of pharmaceuticals for human and veterinary purposes, books, some mill products, and other products appropriate for a gluten-free diet.
• Native taxable supplies of emission rights, gold, scraped materials and waste, construction and assembly works will continue to be subject to the anti-charge mechanism.
  • Application of the anti-charge mechanism will be prolonged, and will use in local purchases of cereal and technical crops, metals, mobile phones, integrated circuits, notebooks, laptops and video game consoles and effective from 1^st April 2015,.
  • The native anti-charge regime will be applicable to supply of sugar beet. When the whole amount of tax base supply crosses CZK 100,000 (approx. €3,600) then the anti-charge regime will be used and it effects from 1^st September 2015.
• The location of a taxable supply of telecommunication services, radio and television broadcasting, and electronically delivered services to persons not accountable to tax will be in determined to be the place of the customer. Providers of these services wish to avoid VAT registering in all EU Member States in which their customers are situated may freely register under the special administrative regime called “mini one-stop shop”.
• In 2015, changes to the rules will occur for applying the reduced 15% VAT rate due to social housing.
• Explanations in the real estate area is reviewed for VAT purposes during 2015.
• Starting from 1^st January 2016, the review statement will be announced. The rule to submit a review statement with the tax return will apply to all taxpayers. With the help of this statement, taxpayers must give detailed information on taxable supplies received and delivered.
• A proposed reduction in the turnover threshold for obligatory VAT registration from CZK 1 million to CZK 750,000 does not apply.