Czech Republic: VAT changes with consolidation of reduced rates
The Czech President signed legislation ushering in changes to the country’s value-added tax (VAT) system. Effective from January 1, 2024, the new law consolidates the 10% and 15% reduced rates into a single 12% rate. The legislation also includes the repeal of 22 tax exemptions, introduces limits on employee benefit deductions, and raises excise taxes and taxes on gambling activities. The enactment is awaiting publication in the Official Gazette for formal implementation.
