Czech Republic: Temporary reduction in fuel excise duties, VAT treatment of fuel cards, interest on retained VAT deductions
Reports about recent excise and value added tax (VAT) developments
Reports about recent excise and value added tax (VAT) developments
The KPMG member firm in the Czech Republic has prepared reports about the following excise and value added tax (VAT) developments (read more at the hyperlinks provided below).
- Temporary reduction in excise duties on diesel oil and unleaded petrol: To mitigate the effects of the energy crisis on fuel prices, the government has proposed temporarily reducing the excise duties on diesel oil and unleaded petrol by CZK 1.50 per liter from 1 June to 30 September 2022. The excise duty on a liter of petrol would thus fall to CZK 11.34 (from CZK 12.84), and for diesel oil to CZK 8.45 (from CZK 9.95). Read a May 2022 report
- VAT treatment of fuel cards: The VAT Act does not offer any detailed guidance on the correct application of VAT to fuel cards. The VAT treatment of these transactions has always been based on general principles and on interpretations of international case law. Recently, the European Commission's VAT expert group has commented on this topic. Read a May 2022 report
- Reduction of interest rate on long-term retained VAT deduction held unlawful: The Supreme Administrative Court held unlawful the tax administrator’s reduction of the interest rate on a long-term retained VAT deduction. The court found that taxpayers are entitled to interest at a rate 12 percentage points higher than the one applied by the tax administrator. Read a May 2022 report
The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organization. KPMG International Limited is a private English company limited by guarantee and does not provide services to clients. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 3712, 1801 K Street NW, Washington, DC 20006.