Czech Republic: European Council allows proposal to implement VAT exemptions for small businesses
The European Union Council published Decision No. 8365/2022, accepting the European Commission’s request to permit the Czech Republic to introduce VAT exemptions for small businesses with annual revenues of up to EUR 85,000.
The amendment includes:
- Exempting VAT taxable individuals whose annual turnover does not exceed the equivalent in national currency.
- Reducing the compliance burden on small businesses while avoiding competitive distortions in the internal market.
- Special measures which will decrease VAT liabilities, eliminating the administrative pressure and compliance expenses for both small businesses and tax authorities.
The law will be in force until 31 December 2024.
Source: eur-lex.europa.eu
