Czech VAT cut to 17.5% gains support

3 September 2011 - TMF Group Globalizing Business

Read an update on this story of a Czech VAT 1% rate rise
The Czech proposal to merge the standard VAT rate (currently 20%) and increase the reduced rate (currently 10%) has gained support in the Lower House of the Parliament this week.

Click here to read about the original Czech VAT cut proposal in March 2011

The changes will come in two steps: firstly the reduced rate will be raised to 14% in 2012; secondly, the reduced and standard VAT rates will be merged at 17.5%.

The proposal was raised by the existing coalition government, but has been in doubt due to the potential impact on those on lower incomes.

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