Czech reduced VAT rate increase update

5 January 2012 update

March 2012 update - Click here to read about new plans for a Czech VAT rate rise

The Czech lower house of parliament has approved this week a proposal to increase the Czech reduced VAT rate from 10% to 14% in 2012.

This comes as part of a two stage plan to merge the reduced VAT rate with the standard rate - currently 20%.  Click here to read about the full proposal to lower the Czech VAT rate by 2014. The Czech cabinet hopes to cut the Czech deficit from the current 4.2% to 2.9% in 2013.

This proposal is part of a plan to help reduce the state deficit down to 3%, the EU target rate for members of the Euro single currency. 

Click here to read about Czech VAT compliance

The next stage for this Bill is to go to the upper house.

 

 
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