The Czech government has accepted a new reduced 10% VAT rate from January 1, 2015 andthis rate will be used on medicines, pharmaceuticals, e-books and baby foodstuffs. Under the EU VAT Directive, member states are permitted two reduced VAT rates. The cost of initiating 10% VAT rate was actually estimated at CZK4.2bn (USD200m) annually, but new reports add a cost to the measure of just CZK2.9bn.
Related Posts
Czech Republic rolls out Pillar Two tax forms
June 01, 2026
The Czech government published Decree No. 68/2026 on 20 May 2026, approving tax forms for multinational enterprises under the OECD's Pillar Two global minimum tax framework. What companies need to file Two separate returns are now mandatory.
Read MoreCzech Republic proposes key VAT amendments for 2027-28
May 21, 2026
The Czech Ministry of Finance has unveiled two draft amendments to the VAT Act, introducing significant changes scheduled to take effect from 1 January 2027 and 1 July 2028, addressing bad debt provisions, hospitality VAT rates, and partial
Read MoreCzech Republic: Senate approves tax treaty with Kenya
May 07, 2026
The Czech Republic's Senate (upper house of parliament) has approved the ratification of the pending income tax treaty with Kenya on 6 May 2026. Signed on 23 September 2025, it is the first tax treaty between the Czech Republic and Kenya. The
Read MoreCzech Republic: Government approves bill to reinstate EET, cut VAT on soft drinks, and exempt tips
May 06, 2026
The Czech Republic government has approved a comprehensive overhaul of the country's sales recording system alongside significant tax relief measures for businesses and citizens. First Deputy Prime Minister and Minister of Industry and Trade
Read More
Czech Republic: Senate approves ratification of income tax treaty with Tanzania
April 17, 2026
The Czech Senate gave its approval for the ratification of the income tax treaty with Tanzania on 15 April 2026. The treaty was signed on 14 May 2025. This is the treaty between the two countries and aims to eliminate double taxation concerning
Read MoreCzech Republic, Argentina sign income tax treaty
April 15, 2026
The Czech Republic’s Ministry of Finance has announced that the Czech Republic and Argentina signed an income and capital tax treaty on 14 April 2026. This agreement aims to prevent double taxation on income and capital between the two
Read More