Czech Republic: VAT considerations regarding donations to Ukraine, leaseback transactions, one-stop-shop (OSS) regime

Recent value added tax developments

Donations to Ukraine, leaseback transactions, one-stop-shop (OSS) regime

The KPMG member firm in the Czech Republic has prepared reports about the following value added tax (VAT) developments (read more at the hyperlinks provided below).

  • Donations to Ukraine: The General Financial Directorate issued summary information on the VAT implications of making donations to support Ukraine. While for income tax, Czech laws can be amended to respond flexibly, the situation is rather more complicated for VAT, as the possibilities to deduct VAT are based primarily on harmonised EU legislation. Read an April 2022 report
  • VAT treatment of leaseback transactions: Within the Coordination Committee of the Czech Chamber of Tax Advisors and the General Financial Directorate, the financial administration confirmed that they will start applying the Court of Justice of the European Union’s interpretation to leaseback transactions, so that they now will be regarded as single transactions from a VAT perspective. Read an April 2022 report
  • One-stop-shop to simplify collection of VAT on cross-border supplies of goods: The Council of the EU and the European Commission are preparing further steps on VAT to simplify cross-border transactions and the import of goods into the EU for end consumers. The digitisation of VAT reports, electronic invoicing and harmonisation in other areas are also on the way. Amendments to the VAT directive are expected to be published later this year, with implementation in individual Member States planned for late 2023 or early 2024. Following the Economic and Financial Affairs Council of the EU (ECOFIN) meeting in March 2022, the European Commission has prepared an extension of the one-stop-shop (OSS) as the preferred option to simplify the collection of VAT on cross-border supplies of goods.  Read an April 2022 report


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