A negative budget impact of the considered reduction of VAT on beer delivered with help of a service in restaurants from 21 to 10% will likely reach CZK 160m. A considered reduction of VAT on non-alcoholic drinks served in restaurants will likely cause a decrease in the tax collection in the amount of CZK 65m. The new rates will likely take effect beginning July 1, 2016. This is estimated by the Ministry of Finance of the Czech Republic (MF), which proposes the VAT rate reduction in the framework of a support for so-called electronic revenue registration system. The proposal is in accordance with EU regulations, the ministry said. The draft will be submitted by Czech Minister of Finance (ANO) to the coalition council on February 8, 2016.
Source: www.cianews.cz
