Czech Republic delays general reverse charge
- Dec 20, 2019 | Richard Asquith
The Czech Republic will not go ahead with the implementation of the anti-VAT fraud general reverse charge on 1 January 2020.
The measure, which takes out the cash payment of VAT from B2B transactions, had been agreed with the European Commission ('EC') as a derogation from the EU VAT Directive earlier this year. The EC had only granted a two-year period for the measure until 2022. It will only apply for transactions at or above €17,500. The measure means the seller does not have to charge or collect VAT on domestic transactions. Instead, the customer reports the transaction in their VAT return twice. VAT reverse charge is already frequently applied on cross-border transactions and some, limited domestic supplies, in VAT-fraud sensitive sectors.
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