The Government has recently decided to introduce a domestic DST following the delay in a unified approach at both the global (OECD) and regional level (European Union). The Czech DST is expected to apply temporarily, until an international approach is implemented. Previously, the Bill regarding digital service tax (DST) was suspended in the second hearing during the 58th meeting of the Chamber of Deputies, which was opened on 15 September 2020. The legislative process concerning the digital services tax bill is not over yet.
Currently, the proposed digital service tax rate is 7%. Companies with a global turnover of EUR 750 million, including on turnover from digital advertising, the sale of user data, and intermediation services are subject to 7% DST rate. On the other hand, targeted ad campaign services, use of a multilateral digital interface, and supply of user data would be subject to DST.
