VAT reduced rates proposed to be consolidated, resulting in some reclassifications

The lower chamber of the Czech Republic parliament approved a recovery package on 14 July 2023 that would consolidate the reduced VAT rates, resulting in some supplies being reclassified for VAT purposes.

The Czech VAT system currently has three rates: a standard rate of 21% and two reduced rates of 15% and 10%. While the standard VAT rate would remain unchanged, the government has proposed to consolidate the two reduced rates into a single reduced rate of 12%. In addition, a new zero VAT rate would be introduced but only for books, including e-books.

Source: BDO

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