Czechia may raise the threshold for compulsory VAT payment to two million
Starting next year, the tax conditions for thousands of entrepreneurs and sole proprietorships will change: the European Commission has given the green light for raising the threshold for compulsory registration to value-added tax (VAT); the raising of the threshold for compulsory registration will therefore double from one to two million koruna, so informed Finance Minister Zbyněk Stanjura.
The current threshold, which corresponded to 35,000 euros (CZK 1,141 million at the then exchange rate), was set in 2004 when the Czech Republic joined the European Union and had not been changed since then . Brussels’ approval is needed for the change at the legislative level, as VAT is among the subjects of EU competence. According to the ministry’s estimates, thanks to the threshold raise, the limit increase is expected to reduce VAT taxpayers by about 105 thousand.
Along with raising the threshold, the government wants to increase to two million koruna the limit for access to the flat-rate taxation scheme provided for sole proprietors. The rules will have to be debated by Parliament. “For all those who do not want to be taxpayers and still have income up to two million, this is good news. They will be able to choose from next year,” Stanjura said. According to him, the government has prepared a law that will raise the tax threshold to two million kroner and at the same time increase the possibility of using a flat tax for the same amount.
Source:https://www.camic.cz/; https://www.novinky.cz/
Source of images: https://pixabay.com/; https://storyset.com/
