Extention of local reverse charge regime from 1.4.2015 (Czechia)

This is a change of VAT law already approved in 2014, only  with effective date as of 1.4.2015. The reverse charge applies to transactions with total amount of the tax base supplied all the selected goods exceeds the amount of CZK 100 000 (if more types of goods are selected then sum of the relevant one needs to considered, not separate values per product code).

The scope of the products that are newly subject to so called „local“ reverse charge regime is defined by government regulation. It covers

  1.  cereals and industrial crops, including oilseeds and sugar beets, which are listed under the nomenclature codes Customs Tariff 1005, 1201, 1205, 1206 00, 1207 50, 1207 91, 1209 10 00 or 1212 91 (sugar bets from 1.9.2015)

2.  metals, including precious metals, which are listed under the Customs Tariff nomenclature codes in Chapter 71 and Section XV, with the exception of goods:

  • which is stated under the Customs Tariff nomenclature codes 7101 to 7105, 7108 20 00, 7113 to 7118, 7302, 7309 00 to 7312 00 00, 7315 to 7326, 7415 to 7419, 7507, 7508, 7611 to 7616, 7806 00, 7907 00 00, 8007 00 80, 8101 99 90, 8102 99 00, 8103 90 90, 8104 90 00, 8105 90 00, 8106 00 90, 8107 90 00, 8108 90 60, 8108 90 90, 8109 90 00, 8110 90 00, 8111 00 90, 8112 19 00, 8112 29 00, 8112 59 00, 8112 99, 8113 00 90,
  • which represent waste and scrap of hafnium (celtia), which is listed under Customs Tariff nomenclature codes 8112 92 10
  • which are stated under the Customs Tariff nomenclature codes in Chapters 82 and 83,
  • covered by special arrangement pursuant to § 90 of the Value Added Tax (second hand goods, works of art, collectors’ pieces and antiques),
  • subject to a reverse charge procedure under § 92c of the Act on Value Added Tax (different type of waste, can be specify upon request)

3. mobile phones, which are listed under the Customs Tariff nomenclature codes 8517 12 00 or 8517 18 00

4.  integrated circuits such as microprocessors and central processing units, listed under nomenclature code 8542 31 Customs Tariff and PCB mounted these circuits, which are supplied in a state prior to integration into end user products,

5.  portable automatic data processing machines, which are listed under the nomenclature codes Customs Tariff 8471 30 00

6.  video game consoles, which are listed under the Customs Tariff nomenclature codes 9504

 

The definition refers to custom office numbering of products that follows EU directive č. 2658/87 from 23. July 1987.

 

Supplier meets the statutory conditions of application of the reverse charge not only by using reverse charge to VAT , but if further conditions are met. Qualifying invoice issued  must state the indication “daň odvede zákazník” according to § 29 para. 2 point. c) of the VAT Act, the VAT is reported accordingly in the VAT return and supporting VAT evidence report is submitted together with the VAT return. The supporting VAT evidence is the same as the one for reporting construction works and repairs. In case ESAB is not familiar with that reporting, details can be provided upon request.

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