Czech News - January 1998 - Ministry Of Finance Instructions

The following instructions were published in Cenový vestník No 1 and 2/1998.

Decree D - 160

Decree D-160 deals with the application of VAT to taxpayers who have not been founded or established for the purpose of conducting business activity (non-profit entities), and in the health service, education, and cultural sectors. The decree also deals with the application of VAT by municipalities.

The decree is effective from 1 January 1998 and replaces the decree D-111.

Decree D - 161

Decree D-161, which replaces D-101 from 1 January 1998, deals with the application of VAT to accommodation services and catering provided for children recreation needs.

Decree D - 162

Decree D-162 deals with the application of VAT to accommodation not open to the public (e.g. on site accommodation for employees).
The decree is effective from 1 January 1998 and replaces decree D-102.

Decree D - 163

Decree D-163, which replaces decree D-138 from 1 January 1998, deals with the application of VAT to construction services. It defines terms used in the construction sector and specifies list of goods whose tax base must be separately shown when included in a building. The decree also deals with several different types of construction contracts and their VAT implications, as well as with VAT consequences for foreign contractors in CR.

Decree D - 164

Decree D-164 analyses various types of sales of goods from the point of view of the date of VAT taxable supply.

The instruction also addresses the VAT issues related to provision of discounts and bonuses. The decree replaces decree D-143 effective from 1 January 1998.

Decree D - 171

This VAT methodical instruction provides a detailed explanation by the Ministry of Finance concerning determination of the subject of VAT (supply) according to the section 7 of the VAT Act, definition of the term taxable supply according to section 2 and the determination of supplies which are not classified as payments for taxable supplies under the VAT Act (e.g. bank interests, dividends, insurance payments, penalties, etc.).

Decree D - 172

Decree D-172 stipulates the exchange rate for taxable supplies in foreign currency. The price for a taxable supply should be calculated in Czech currency in accordance with the Accounting Act using the Czech National Bank exchange rate or a fixed exchange rate if determined by the VAT payer.

This decree replaces decree D-141 and is in effect from 1 January 1998.

New Laws and Treaties Published in the Collection of Laws

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

For further information on the above, please contact Mr Richard Fletcher by telephone on +420 2 2440 1300 or E-mail directly to richard.g.fletcher@arthurandersen.com