The Italian authorities have extended (again) the due date to submit the Italian Spesometro return....
home / Czech Republic introduces (again) new VAT reporting obligation
The Czech authorities liked the idea of creating new VAT returns. After introducing the Control Report last January, where all registered businesses have to declare detailed information about the transactions reported in the VAT return, they will now oblige businesses providing accommodation and catering services to report their revenues in a separate declaration. If these new VAT reporting obligations are finally approved, they will apply from 1 December 2016. Thankfully, the authorities have foreseen a tax credit of CZK 5,000 for taxpayers obliged to submit this return, the purpose of this credit is to compensate the additional compliance costs.
The good news for accommodation and catering providers is that the VAT rate on these services will be reduced from 21% to 15%. Most EU countries have a reduced VAT rate for accommodation services (UK is a famous exception). The rationale behind this subsidy is that it is a labour intensive industry, hence reducing unemployment significantly when the VAT rate is reduced.