Document 218 - Amendment to the VAT Act - EU

The draft amendment to the VAT Act transposes into Czech law part of the EU rules for VAT in the digital age and, most importantly, clarifies the functioning of the one-stop shop regime. It extends the responsibility of platforms for the payment of VAT on selected supplies of goods, unifies the rules for the place of supply and the moment when the tax liability arises and makes it easier to pay VAT on cross-border supplies of electricity, gas, heat and cold. It also abolishes the warehouse scheme with deferred effect from mid-2028 and introduces a one-off VAT refund to certain EU authorities for supplies related to the COVID-19 pandemic. It also reaffirms the Ministry of Defence’s VAT exemption for defence products under the SAFE scheme.