Government presents “Czech Republic in Shape” consolidation and austerity package

• The two reduced VAT rates (10% and 15%) would be replaced by one reduced rate of 12%. The new 12% rate would apply primarily to food, medicine, magazines, construction for residential housing, and medical devices.
• The rate on draft beer, hairdressing services, beverages, firewood, and certain other items would be increased to the standard VAT rate of 21%.
• Books would be exempt from VAT.

Source Deloitte

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