In relation to the rise of prices of electricity and gas, the Czech Ministry of Finance issued a decision on pardoning VAT on supplies of electricity and gas in November and December 2021 in the Czech Republic. The pardon applies to the supplies made and installments received in those two months.
This measure raised a lot of questions concerning its application. One of the most respected VAT experts in the Czech Republic, Olga Holubová, questions its conformity with the EU VAT legislation (VAT directive does not provide for the general pardon of VAT), potential issues with the right to the VAT deduction if the VAT was charged on the supply (fiscal administration believes that there is none), or practical difficulties in amending suppliers’ information systems, in her open letter addressed to the Minister for Finance. Please see here
Source Echo24
The decision is in force since 1 November 2021.
Ondřej Štědrý
Tax Adviser
Prague
Czech Republic
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