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country-icon République tchèque

06.27.23

Austerity and consolidation package

Fiscal policies have always been a high priority for countries, but especially so during periods of economic uncertainty as countries endeavor to balance fiscal strategies with soaring inflation. The Czech Republic’s most recent initiative- the austerity and consolidation package - aims to do precisely this, by providing some stability in the market and reducing inflation.  Kofax’s recent post commented on the proposal to introduce a new VAT rate in the country. The austerity and consolidation package re-affirms that the country’s intention to consolidate the reduced rates (10% and 15%) into a new single rate of 12%. The new 12% rate would apply primarily to food, medicine, magazines, construction for residential housing, and medical devices.  The rate on draft beer, hairdressing services, beverages, firewood, and certain other items would be increased to the standard VAT rate of 21%. Books would be exempt from VAT. Currently, these changes are scheduled for 1 January 2024, but are still subject to approval.  The Czech Republic is a compliant territory for Kofax. If confirmed, Kofax will support the VAT rate and incorporate this as part of our e-invoicing solution in the country. 

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