Government Bill 488, now published in the Official Gazette of the Czech Republic, makes several changes to the country’s VAT Act, the most significant of which are as follows:
- The country’s two reduced rates of 15% and 10% are replaced by a single reduced rate of 12%;
- Books, including electronically supplied books, are exempt with right of deduction;
- Beverages, with the exception of milk, drinking water (but not bottled water), and certain soy-based beverages, are standard rated.
These changes all take effect on January 1, 2024.
