The VAT reverse charge for a range of agricultural crops has been extended by the tax office. The local reverse charge mechanism is a tool used to help prevent so-called missing trader VAT fraud. This is a fraud whereby criminals target the EU VAT intra-community process to obtain VAT refunds. The present VAT rate in the Czech Republic is 21%.
Under special powers accepted by the European Commission, countries may exclude VAT on domestic trades where they suspect fraudulent activity. The Czech tax office has identified the traders of cereals, oats, peanuts, wheat, sesame seeds and rye and the reverse charge will be usable for single transactions of more than CZ Koruna 100,000.
