Tax and legal news

An amendment to the VAT Act was approved together with a tax package, and it changed the provision governing the method of calculating and rounding VAT. The amendment as a whole is effective from April 2019, but according to the interim provisions, the existing VAT calculating method can be used until the end of September. The first impression could be that such a change is not really substantial, but omitting the change can influence the correctness of issued tax documents. We recommend to all VAT taxpayers that they check their accounting software and their preparedness for the change so that the method is applied correctly in October.

The governmental amendment to the ERS Act (the Electronic Registration of Sales Act) has been under discussion for quite a long time, but the Senate has refused its wording. The approval depends on a repeated vote in Parliament in September.

Starting on 1 April, the VAT Act governs the application of VAT to vouchers based on the implementation of the respective European directive. Generally, a voucher means an instrument with an obligation to accept it as payment or partial payment for supplied goods or provided services.

After a long approval process, an amendment to the tax laws was published in the collection of laws, effective from 1 April 2019. We have informed you about the amendments already, so now we just wanted to briefly mention the substantial changes. We will comment on the impact of the changes in our upcoming news.

If a Czech entity is subject to the duty to withhold tax from income paid to/accounted to a foreign entity, then the Czech entity is obliged to report such income and the withheld tax.

If you have employees who are not subject to mandatory social security and health insurance in the Czech Republic but are subject to foreign insurance in a member state of the European Union or the European Economic Area or Switzerland, then determination of their super-gross salaries for the purposes of calculating tax from dependent activities changes from this January.