Czech Republic Implements Comprehensive VAT Changes Starting January 2025

Czech Republic announces VAT changes effective from January 1, 2025
Updates include changes to cross-border VAT rules, registration thresholds, and taxation periods
New cross-border VAT regime allows small enterprises VAT exemptions in other EU states
Two new VAT registration turnover thresholds introduced at 2,000,000 and 2,536,500 Czech korunas
Option for quarterly taxation period available for VAT payers with turnover under 15,000,000 korunas
Expanded and clarified rules for VAT groups
Extended deadline for correcting tax base and deductions to seven years
New modifications for VAT exemptions on financial activities, education services, and book supplies
Shortened period for claiming VAT deductions now ends by the second calendar year after the right to deduct arises
Certain transactions exempt from domestic reverse charge mechanism, including forced sales

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