The Czech Tax Agency clarified its VAT rules for real estate effective July 1, 2025. The guidance redefines key concepts, expands exemptions for completed immovable property, introduces a new substantial‑change definition requiring costs above 30% of the tax base, and adds new classifications for residential and social housing. These changes align Czech VAT with EU case law and modify when and how VAT is applied to real‑estate transactions.
From July 1, 2025.
It now requires construction that alters use or living conditions, with costs exceeding 30% of the tax base.
Exemptions broadened, with taxation limited to first supplies made within 23 months of completion or substantial change.
Residential and social housing buildings.
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VatCalc · about 1 month ago
The Czech government will reintroduce its Electronic Reporting of Sales (EET) regime from 1 January 2027 under a revised “EET 2.0” format, covering in‑person payments such as cash, card and QR code transactions. Small businesses earning below CZK 1 million can opt for an “EET OFF” exemption or simplified regime, and the Ministry estimates the system could raise an additional CZK 14–15 billion annually in VAT and income tax.
Bloomberg Tax · about 2 months ago
The Czech Customs Administration clarified on Feb. 6 that individuals from non‑EU countries can claim VAT refunds on goods purchased in the Czech Republic if they prove residence abroad and are not conducting business locally. Refunds are excluded for tobacco, alcohol, food, fuel and other specified goods, and sellers must provide two copies of the sales document with required notations.
Bloomberg Tax · 3 months ago
The Czech Tax Agency clarified input VAT deduction rules for acquisitions of long‑term assets effective 1 January 2025. The guidance outlines procedures for partial deductions, incorporates the EU cross‑border regime for small enterprises, and sets a deadline for claiming deductions by the end of the second calendar year after the relevant year.
International Tax Review · 3 months ago
Deloitte’s partner Adham Hafoudh discusses the rapid rollout of e‑invoicing and e‑reporting mandates across Europe, the data consolidation challenges they pose, and the expected expansion of these obligations up to 2030. He highlights Deloitte’s integrated advisory and technology solutions to help firms adapt, and notes the potential role of AI in further automating tax processes while stressing the need for precision and data security.
FE Week · about 13 hours ago
The Court of Appeal has ruled in favour of Colchester Institute in a VAT dispute with HMRC, allowing the college to reclaim VAT on pre‑2010 capital projects. The decision could extend to an estimated 20‑30 other colleges and raises uncertainty for charities that may lose VAT discounts. The ruling centres on the Lennartz mechanism, which HMRC had withdrawn in 2010.
Deloitte Malta · about 24 hours ago
Malta’s Value Added Tax Act will be amended by amendment 86 of 2026, taking effect on 1 October 2026, to narrow the VAT exemption for gambling and betting services. The changes are expected to improve VAT recovery for B2C operators and certain B2B providers, with detailed guidelines to follow.
