VATLive > Blog > Czech Republic > Czech Republic delays general reverse charge

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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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 can be contacted at: richard.asquith@avalara.com. He is part of the European leadership team which won International Tax Review's 2019 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.
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