Czech Republic Announces Comprehensive VAT Reforms Effective January 1

• The Czech Financial Administration announced VAT changes effective from January 1
• New cross-border VAT regime for small enterprises to use VAT exemptions in other EU states
• Two new turnover thresholds introduced for VAT registration at 2,000,000 and 2,536,500 Czech korunas
• Option for payers to choose quarterly taxation if domestic turnover is under 15,000,000 korunas
• Clarifications and expansions made to the rules for VAT groups
• Extension of the deadline for correcting tax base and deductions to seven years
• Modifications to VAT exemptions for financial activities, education, and book supplies
• Shortening of the deadline for claiming tax deductions to the end of the second calendar year following the tax right year
• Exemption of specific transactions from the domestic reverse charge regime, including forced sales transactions

Source: news.bloombergtax.com

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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