The Czech coalition government is taking into account to introduce a new, deducted VAT rate for medicines. The EU VAT Directive permits two reduced VAT rates below any member state’s standard VAT rate.  These rates may not go beyond 5%.  Recently, the Czech Republic only has a single deducted VAT rate of 15%, where the standard VAT rate of Czech is 21%. The proposed new deducted VAT rate would help offset the planned withdrawal of the patients’ health regulatory fees.