Czech 1% VAT rise for 2013

Proposals for a 1% VAT rise in the Czech Republic in 2013 have now been finaliased.

In the first reading of a Bill to introduce a range of fiscal measures aimed at reducing the state’s deficit to below the Euro currency target of 3% of GDP.  The measures include a rise in the standard and reduced Czech VAT rates to 21% and 15%, respectively.

The Czech Republic has had a number of false starts on its plans to change its Value Added Tax rates, including plans to cut them to a single rate of 17% last year.  Much of the problem has been caused by a weak government coalition.

The Bill has now been approved by the Czech President, and will go into place on 1 January 2013.