CONTINUEThis site uses cookies. By continuing to browse this site you are agreeing to our use of cookies. Find out more.
  1. Front Page
  2. News By Topic
  3. Czech Lawmakers To Decide On VAT Rate Cuts

Czech Lawmakers To Decide On VAT Rate Cuts

by Ulrika Lomas,, Brussels

29 April 2019

On April 17, 2019, the Czech Finance Ministry announced that legislation, which includes value-added tax cuts on water, sewerage, catering, and professional services, has been submitted to parliament for its third reading.

Under the measures, the rate of VAT on hairdressing and barber services, sales of draft beer, and repairs to bicycles, footwear, clothing and textiles will be reduced from 21 to 10 percent. In addition, VAT on water and sewerage charges will fall from 15 to 10 percent.

The bill also includes a further reduction in VAT on catering and soft drinks. This was recently cut from 21 to 15 percent, and will be further reduced to 10 percent.

The full list of goods and services to which the 10 percent reduced rate of VAT will apply under the proposals includes:

  • home care for children, old, sick and disabled people;
  • catering services and beverages, including barreled draft beer served as part of a catering service, but excluding catering services that are exempt from tax under Sections 57 to 59 of the Value Added Tax Act, and with the exception of tobacco products and other alcoholic beverages;
  • water treatment and distribution via networks, sewage disposal and treatment including other services related to these activities;
  • home cleaning services;
  • household window washing services;
  • minor repairs of shoes and leather products;
  • minor repairs and adjustments of clothing and textile products;
  • minor bicycle repairs; and
  • hairdressing, beauty and similar services.

TAGS: Finance | VAT rates | tax | value added tax (VAT) | food | legislation | Czech Republic | services | Tax

To see today's news, click here.


Tax-News Reviews

Cyprus Review

A review and forecast of Cyprus's international business, legal and investment climate.

Visit Cyprus Review »

Malta Review

A review and forecast of Malta's international business, legal and investment climate.

Visit Malta Review »

Jersey Review

A review and forecast of Jersey's international business, legal and investment climate.

Visit Jersey Review »

Budget Review

A review of the latest budget news and government financial statements from around the world.

Visit Budget Review »

Stay Updated

Please enter your email address to join the mailing list. View previous newsletters.

By subscribing to our newsletter service, you agree to our Terms and Conditions and Privacy Policy.

To manage your mailing list preferences, please click here »