Wednesday, June 5, 2019
The Czech Ministry of Finance announced on May 31, 2019, a legislative package to implement the European Union directive on the mandatory reporting of tax planning arrangements and the EU VAT "quick fixes."
According to the ministry, the proposals amend the Act on International Cooperation in Tax Administration, which incorporates Directive 2018/822 into the Czech law, intended to enable new risks of tax avoidance to be identified earlier and for measures to be taken to block harmful arrangements. EU member states will be required to automatically exchange the information they receive through a centralized database.
EU member states have until December 31, 2019, to transpose the directive into their national laws and regulations. The new reporting requirements will apply from July 1, 2020. Member states will be obligated to exchange information every three months, within one month from the end of the quarter in which the information was filed. The first exchanges should therefore be completed by October 31, 2020.
In addition, the package includes measures to implement the EU VAT "quick fixes." Agreed by EU finance ministers in 2018, these four short-term harmonization measures cover:
These adjustments will apply from January 1, 2020.