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Czech Republic considers new reduced VAT rate

  • VAT
  • 18 December 2013 | Richard Asquith

Czech Republic considers new reduced VAT rate

The Czech coalition government is considering introducing a new, reduced VAT rate for medicines.

EU rules on reduced VAT rates

The EU VAT Directive permits two reduced VAT rates below any member state’s standard VAT rate.  These rates may not go below 5%.  Currently, the Czech Republic only has a single reduced VAT rate of 15% - the standard Czech VAT rate is 21%.

The proposed new reduced VAT rate would help offset the planned withdrawal of the patients’ health regulatory fees.  This would hit insurers.


VP Global Indirect Tax
Richard Asquith
VP Global Indirect Tax Richard Asquith
Richard Asquith is VP Global Indirect Tax at Avalara, helping businesses understand their compliance obligations as they grow globally. He is part of the European leadership team which this year won International Tax Review's Tax Technology Firm of the Year. Richard qualified as an accountant with KPMG in the UK, and went on to work in Hungary, Russia and France with EY.