New reverse charge on the sale of telecom services in the Czech Republic

30 September 2016

From 1 October 2016 a new domestic reverse charge rule will be introduced on the wholesale of telecom services in the Czech Republic.

This measure will mean that the providers of telecom services will no longer have to charge VAT on their supplies to other business customers, as it will now be the business customer’s responsibility to account for it.

It is hoped that by introducing this new measure it will help to reduce VAT fraud in the wholesale telecoms sector.

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