In regard 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 considering the value of the goods. This amendment is effective from 1st February 2016. Previously, reverse charge mechanism was possible 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, given that the agreement is in writing.
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