Czech VAT generalised reverse charge 2020
- Jan 26, 2019 | Richard Asquith
The Czech Republic has become the first EU member state to request to apply the generalised reverse charge mechanism (GRCM) on domestic supplies. Its Ministry of Finance said it will look to introduce the measure in July 2020 if approved by the European Commission.
At the end of 2018, member states agreed to permit countries to voluntarily apply the anti-VAT fraud measure on a temporary basis. The system withdraws the cash payment of VAT on B2B transactions above €17,500 for goods or services. Instead the customer reports both the input and output VAT as a book-only entry in their VAT return. It has been introduced to help combat missing trader fraud, which exploits the zero-rating of EU VAT on cross-border transactions.
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