The list of commodities where reverse charge will be newly applicable was amended. Of interest are especially the exceptions. Exceptions in case of “raw or semi-processed metals” listed under the Customs Tariff nomenclature codes – Chapter 71 and Section XV should include (i.e. the local reverse-charge mechanism will not apply to) the following items:

• goods listed under the Customs Tariff nomenclature codes 7101 through 7105, 7108 20 00, 7113 through 7118, 7302, 7309 00 through 7312 00 00, 7315 through 7326, 7415 through 7419, 7507, 7508, 7611 through 7616, 7806 00, 7907 00 00, 8007 00 80, 8101 99 90, 8102 99 00, 8103 90 90, 8104 90 00, 8105 90 00, 8106 00 90, 8107 90 00, 8108 90 60, 8108 90 90, 8109 90 00, 8110 90 00, 8111 00 90, 8112 19 00, 8112 29 00, 8112 59 00, 8112 99, 8113 00 90 (amended);
• waste and scrap from hafnium (celtium) which is listed under the Customs Tariff nomenclature code 8112 92 10(amended);
• goods listed under the Customs Tariff nomenclature codes in chapters 82 and 83 (this remained unchanged);
• goods subject to special scheme for dealers in second-hand goods, works of art, collectors’ items and antiques (this remained unchanged);
• goods subject to local reverse-charge mechanism according to the Section 92c of the Czech VAT Act – e.g. scrap and waste (this remained unchanged).

Furthermore, the following items will also be subject to the local-reverse charge mechanism as from 1 January 2015:

• cereals and technical crops, including oil seeds and sugar beets, which are not commonly used for final consumption, which are listed under the Customs Tariff nomenclature codes 1005, 1201, 1205, 1206 00, 1207 50, 1207 91, 1209 10 00 or 1212 91 (this remained unchanged);
• mobile phones listed under the Customs Tariff nomenclature codes 8517 12 00 or 8517 18 00 (this remained unchanged);
• integrated circuits such as microprocessors and central processing units listed under the Customs Tariff nomenclature codes 8542 31 and devices with those circuits that are supplied in the state prior to integration into end user products (this remained unchanged);
• game consoles, tablets and laptops, which are listed under the Customs Tariff nomenclature codes 9504 (Customs Tariff nomenclature code 8471 30 00 has been removed);
• portable automatic data processing machines, weighing not more than 10 kg, consisting of at least a central processing unit, a keyboard and display, which are listed under the Customs Tariff nomenclature code 8471 30 00 (newly added).

Please note that the local reverse-charge mechanism should apply to the above items only if the total amount of the tax base stated in the particular invoice for the concerned commodities exceeds CZK 100,000. Finally, also supply of CO2 emission allowances should be subject to this local reverse-charge mechanism, however, in this case no limit will apply.

For further details please contact Petra Safkova at Office: +420251152552 or petra.safkova@cz.pwc.com