The lower chamber of the Czech parliament accepted in the third reading the VAT law amendment on July 23, 2014 that would initiate changes in VAT rates. At present, the standard VAT rate is 21%. Some goods specifically foodstuffs, pharmaceutical products, and some services have a reduced rate of 15%. According to the tax priorities, medicines, books and essential child nutrition have a 10% reduced VAT rate. Additionally, the bill would bring to an end the provisions of the VAT law under which a unified VAT rate of 17.5% were due to apply with effect from January 1, 2016.
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