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The most important changes in the area of VAT in 2015

Sdílet

There are three amendments of the VAT Act in force from the 1st January 2015. The first change concerns Mini-One-Stop-Shop (MOSS), the second change introduces the second reduced rate of VAT 10 % on the selected goods and the third change contains the technical issues.

Overview of some major changes of the Act No. 235/2004 Coll., on Value Added Tax:

  1. (Act No. 196/2004 Coll.) In accordance with the EU law, the MOSS system has been introduced for radio and television broadcasting services as well as for telecommunication and electronic services.
  2. (Act No. 262/2014 Coll.) There are three VAT rates in the Czech Republic from 1. 1. 2015 - the basic VAT rate (21 %), the first reduced VAT (15 %) and the second reduced VAT (10 %). The 10 % VAT rate applies to the selected types of goods, such as: baby food, drugs and vaccines, printed books and sheet music (where advertisement covers less than 50 % of the surface). Other foodstuffs (items for gluten-free diet and phenylketonuria) with 10 % VAT rate are included in the Act. No 360/2014 Coll. (see below).

    In the tax return form, the tax base and first and second reduced tax rate shall be filled in the “reduced tax rate” line.  New valid tax return form for the taxable period 2015 is the form 25 5401 MFin 5401 – pattern no.19 (EPO).
  3. (Act No. 360/2014 Coll.) Some of the important changes are, e.g.:
    After 1.1.2015, the amount of turnover CZK 1,000,000 for 12 immediately preceding consecutive months for obligatory registration for VAT has remained without change (i.e. the reduction of the amount of turnover to CZK 750,000 for obligatory registration for VAT was cancelled).

    The second reduced VAT rate (10 %) was supplemented with grain mill products for gluten-free diet and phenylketonuria: cereals, products from edible fruits and nuts, peel of citrus fruit or melons and oil seeds and crops, various grains, seeds and fruits, industrial or medicinal plants straw and fodder, potatoes, dried legumes, sago, roots or tubers and mixtures of these mill products, as well as malt, starch, wheat gluten and mixtures of these products, modified mill products and ready-mix to prepare food for people intolerant to gluten.

    Extending the reverse-charge procedure on some new groups of goods, if the total amount of tax base of all supplied selected goods exceeds the amount of CZK 100,000. For example: corn and technical crops including oilseeds and sugar beet, metals (including precious metals as stated by law), mobile phones, integrated circuits such as microprocessors and central processing units, portable automatic data processing devices (notebooks, tablets and the like) and videogame consoles.