Michaela Merz

Czech Republic – expansion of local reverse charge mechanism as from 1 January 2015

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Photo_RGB_PC_48238.jpgPeople walking near parked cars on a street - PwCAmendment of the Czech VAT Act should be valid as from 1 January 2015.  The draft of the amendment is currently discussed in the second reading in The Chamber of Deputies. The list of the commodities that should be subject to local reverse charge will be governed by the governmental decree and is also currently under discussion.

According to the latest information we have, the following commodities should be subject to local reverse charge mechanism in the Czech Republic as from 1 January 2015:

 

  • mobile phones listed under the Customs Tariff nomenclature codes 8517 12 00 or 8517 18 00;
  • 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;
  • game consoles, tablets and laptops, which are listed under the Customs Tariff nomenclature codes 8471 30 00 or 9504.

The above commodities should be subject to the local reverse charge provided the total amount of the tax base stated in the particular invoice exceeds 100,000 CZK.

Moreover, also the following commodities should be subject to the local reverse charge:

  • CO2 emission allowances;
  • 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;
  • raw or semi-processed metals including precious metals, which are listed under the Customs Tariff nomenclature codes in Chapter 71 and Section XV, with some exceptions.

It is to mention that the list of commodities and conditions for application of the local reverse charge mechanism are still not final, therefore any of the above information may be subject to change. Once the final wording of the governmental decree will be available to us, I will provide you with more accurate details.

For further information please contact Petra Safkova  at petra.safkova@cz. pwc.com.

 

One thought on “Czech Republic – expansion of local reverse charge mechanism as from 1 January 2015

  1. Pingback: Czech Republic – expansion of local reverse charge mechanism as from 1 January 2015 | Michaela Merz | Kelvin Hulsebos

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