Czech Republic: Approval for a Generalised Reverse Charge Mechanism

7 October 2019
Vat News Czech Rebuplic


The European Commission has approved the introduction of the general reverse charge mechanism in the Czech Republic. For an EU member state to qualify for the application of this measure, a number of factors must be met (e.g. the VAT gap exceeding the EU median by 5 percentage points and the carousel fraud level within the VAT gap exceeding 25%), suggesting significant VAT fraud in the country.

The measure is aimed at reducing VAT fraud in B2B transactions and will commence from 1st January 2020 and will terminate on 30 June 2022.

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