Parliament has still not decided on the amendment to Act No. 235/2004 Coll. on value added tax. The price of services will therefore be either lower by 2.5% in terms of VAT or higher by 1%.
What is already certain, however, is the fact that Greenhousing will not reflect VAT changes in end prices excluding VAT, but will only adjust the statutory VAT rate.
If the amendment is approved and subsequently signed by the President of the Czech Republic, a new VAT rate of 21% will apply to telecommunications services from January 1, 2013. If the amendment is not approved, according to current legislation, VAT rates will be unified at 17.5% from January 1, 2013 (in accordance with the already valid Act No. 370/2011).
You can follow the progress of the law amendment approval on the Chamber of Deputies website.
Changes to Greenhousing Service Prices Telecommunications services are subject to the standard VAT rate. Detailed information about prices valid from January 1, 2013 will be available here on the blog and on the Greenhousing.cz website immediately after the approval or rejection of the bill by the Chamber of Deputies of the Czech Republic, which is expected by December 18, 2012.
Updated December 20, 2012 The coalition needed 101 votes to override the Senate's "no", and in the end the package passed narrowly. 102 politicians voted in favor, 80 out of 193 present voted against.
The president will still comment on the changes. He had previously criticized the VAT increase, so it is possible that he will veto the coalition's vision. However, MPs are now looking to Klaus and believe he will not veto.
You can continue to follow the progress of the law amendment approval on the Chamber of Deputies website.
Updated December 21, 2012 President Václav Klaus today signed the tax package, which will increase the price of all goods and services in the Czech Republic from January 1. The changes include an increase in the value added tax rate by one percentage point to 15 and 21 percent. The amendment has thus been approved and from January 1, 2013, a new VAT rate of 21% will apply to telecommunications services. The increase will therefore also be reflected in Greenhousing service prices, but only through a VAT change from the current 20% to 21%.
Gabriela Hladíková Greenhousing.cz