New VAT rate proposals in Czech Republic

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The Czech government is to introduce a second reduced VAT rate of 10% to be implemented by January 2015. The new rate will apply to pharmaceuticals, e-books and baby food products.

Alongside the 10% reduced rate proposal, there were also proposals for a 5% reduced rate and a VAT rate simplification (combining the standard rate of 21% with the 15% reduced rate to create a 17.5% VAT rate). However, these were rejected.