Czech Republic: New VAT rate as from 2015

The Czech Ministry of Finance has announced a new second reduced VAT rate of 10%, applicable as of 1 January 2015 in the Czech Republic. As a result, the following three VAT rates are currently applicable in the Czech Republic:

  • Basic VAT rate of 21%, for generally specified supply of goods and services
  • First reduced VAT rate of 15%, applies generally for food and drinks, newspapers and brochures, personal public transportation,
  • accommodation, social housing or healthcare
  • New second reduced VAT rate of 10%, for specified goods such as baby food, products for preparation of gluten free diet food,
  • pharmaceuticals for human and veterinary purposes and books


Furthermore, with respect to the VAT rates changes in the Czech Republic, the Czech Ministry of Finance has announced the intention to move restaurant services from the basic VAT rate of 21% to the first reduced VAT rate of 15% in the next year. This change should compensate the burden of electronic record keeping of cash revenues which should affect restaurants in 2016.


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