Changes in VAT

Amendment to the VAT Act from 1.1.2019

On 20 December 2018, Act No. Amending and supplementing Act No. 369/2018 Coll. 222/2004 Coll. on Value Added Tax, as amended. This amendment will come into effect on 1 January 2019. However, the amendment to the VAT Act also introduced changes that will come into effect later on 1 October 2018 and 1 January 2020. Here are the most important changes:

• abolishment of the value added tax guarantee,
• change in the definition of turnover for the purposes of the VAT Act,
• introduction of a turnover limit for persons providing digital services,
• change of tax exemption upon delivery of construction, resp. its part and the lease of this property,
• the introduction of an exemption on the supply of a building which is an individual apartment, an individual apartment or an individual non-residential premises,
• amendment of the adjustment of tax deducted on fixed assets acquired in the form of a lease with the agreed right of purchase of the leased item,
• introduction of a tax deduction adjustment for movable property in connection with a change in the scope of the use of movable property for business purposes,
• change in the delivery of movable property and the acquisition of goods or new means of transport under a lease agreement with the agreed right to purchase the leased item.