News

Generalized reverse charge mechanism in the Czech Republic The European Commission has permitted the Czech Republic to temporarily apply a generalized reverse charge mechanism from 1 July 2020 to 30 June 2022, i.e. until the final system of VAT rules is implemented. All taxable supplies of goods and services will be subject to the new mechanism […]

Start of the last stage of electronic sales registration (EET) and reduction of VAT on certain supplies President Zeman has signed a government amendment of the Act on Electronic Registration of Sales, extending the areas to which EET applies. The third and fourth stages of EET will commence on 1 May 2020. What we already know […]

First draft of digital tax bill The introduction of a digital tax has been long debated.  The tax would be imposed on multinational giants such as Google, Facebook or Apple which generate huge profits from the provision of services but have no seat or branch in this country. During the summer, the Czech Ministry of Finance […]

Creation of a service-related permanent establishment Dear readers, Our briefing at the close of summer is about an interesting judgment of the Supreme Administrative Court file No. 2 Afs 103/2018-46 on the creation of a service-related permanent establishment arising from the activities of a dependent agent. Many foreign companies operating in the Czech Republic perceive the risk of […]

Registration of beneficial owners Over the last two years (such as in News 17/2017 and 9/2018) we have informed you regarding the implementation of the register of beneficial owners and the new obligation imposed on all legal entities and trust funds. Under this obligation, legal entities must have their beneficial owner registered in the newly […]

Tax Package 2019 Last week a set of tax amendments, referred to as the “tax package”, was published in the Collection of Laws. Most of the provisions will come into effect on 1 April 2019; however, there will be some significant exceptions. Please note some major changes brought about by the tax package which are detailed […]

WTS Alfery’s ‘excellent’ ranking in WORLD TAX and WORLD TP 2019 international tax reviews The evaluation focused on three areas – general advisory for corporations, transfer pricing and tax disputes. WTS Alfery has achieved an ‘excellent’ ranking in all three evaluated categories. “This is a great validation of our work. My thanks go to all my […]

Registration of beneficial owners The register of information regarding the beneficial owners of legal entities (hereinafter the “register of beneficial owners”) has been in operation for almost one year. As we previously informed you in November 2017, in our News 17/2017, the register of beneficial owners was established so that legal entities entered in a public […]

Autumn issue of the WTS Tax Bridge newsletter: Differences in the Common System of VAT in Central and Eastern European Countries Although VAT is the most harmonized tax within the European Union, there are some exceptions in the Common System of VAT in the various Member States. However, these exceptions are allowed by the EU VAT Directive in the vast majority […]

Amendment to the VAT Act effective from 2019 The Ministry of Finance has prepared an extensive amendment to the VAT Act that should come into effect (with certain exceptions) in 2019. The Government presented the draft to the Lower House (Chamber of Deputies) in June 2018. As the Chamber of Deputies has only begun to […]