AMENDMENT TO THE CZECH EXCISE TAX ACT: SIMPLIFYING AND MODERNIZING
An amendment to the Czech Excise Tax Act aims to reduce administrative burdens and make tax compliance easier. The main focus is on digitalization of processes and increase of legal certainty for businesses.
The proposed amendment to the Czech Excise Tax Act, set to take effect on January 1, 2025, is still undergoing legislative review. However, it is expected that the changes will not only benefit businesses but also provide tax authorities with enhanced tools for more efficient tax administration.
Proposed general: simplifications
Digitalization: The amendment heavily emphasizes digitalization, aiming to streamline administrative procedures, minimize errors, and lower administrative costs related to excise tax.
Cancellation of registration procedure: This change is expected to save time and reduce administrative costs.
Clear determination of the local jurisdiction of the tax administrator: This will provide greater certainty for non-residents in cases involving unlawful actions by these entities.
Permit procedures: Businesses are expected to benefit from increased cooperation with state organizations, leading to streamlined administrative processes.
Other proposed changes in Czech Excise Tax Act
Distance selling: Processes for foreign e-shops selling excise goods in the Czech Republic are simplified.
Mineral Oil Refunds: The amendment extends tax periods for refund claims on mineral oils used for heat production and other gasoline types (green gasoline).
Cigarette Pricing: It introduces provisions for proving tobacco tax compliance with tax stamps and revises the procedure for determining cigarette prices for consumers.
Microbreweries: The amendment includes assessments of microbreweries and new methods for tracking their production, which is expected to encourage growth in the microbrewery sector.
Tax Exemptions and Refunds: The rules for tax exemptions and refunds, particularly for diplomatic missions and foreign military forces, are simplified to align with the Czech Republic's international commitments.
Other changes: Processes for foreign e-shops selling excise goods in the Czech Republic are simplified.
Other changes effective as of 1 January 2025
In addition to the proposed amendment to the Czech Excise Tax Act, it is important to note that some changes to excise tax legislation were previously approved with a delayed effective date. These include primarily increases in tax rates for various tobacco products and ethanol.
