Changes in Value Added Tax Rates and Deductions in the Consolidation Package of 2023

• The consolidation package was published on 12 December 2023 and entered into force on 1 January 2024.
• The amendment introduces a limitation on VAT deduction for the purchase of M1 cars.
• Three VAT rates will apply from 2024: 0%, 12%, and 21%.
• Books, including e-books, will have a zero-tax rate.
• Several items previously subject to reduced VAT rates will now be subject to a 12% tax rate.
• Items such as cut flowers, firewood, and beverages will be reclassified to the standard 21% VAT rate.
• Occasional public bus transport and the supply of disposable medical and diagnostic devices will be moved to the reduced 12% VAT rate.
• The GFD issued two methodical guidelines on VAT rates and the limitation of VAT deduction for M1 passenger vehicles.
• A separate amendment has revised the rules for determining the date of taxable supply for electricity, gas, heat, cold, and other supplies provided under the conditions set out in the Energy Act.

Source: dreport.cz

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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