Costs to rise for services from abroad after EU accession
Published:
21 February 2004 y., Saturday
While the halls of Parliament continue to rumble with tax talk, domestic banks are abuzz figuring how to work the higher costs into their budgets.
On Jan. 1 domestic services such as telecommunications, legal help and consulting were shifted from the 5 percent value-added tax (VAT) bracket to 22 percent, costing financial institutions hundreds of millions of crowns. With European Union entry May 1, VAT payers will be required to pay the VAT for professional services they buy abroad, which currently come tax-free.
The government coalition last month agreed to propose an amendment that will lower the VAT to 19 percent. Still, businesses such as banks, whose own services are not subject to the tax hike, are facing an especially hard hit.
Most banks have thus far been able to avoid the higher tax by purchasing VAT-subject services from their multinational owners. "Advertising, software, marketing and human resources were previously bought by Czech banks from their parent companies, and taxes were not paid for them," Milan Tomisek of KPMG told the Czech News Agency.
The Czech Republic is one of the few states not to apply this import-services charge, but it is a common practice in EU member states and in some accession states.
Šaltinis:
praguepost.com
Copying, publishing, announcing any information from the News.lt portal without written permission of News.lt editorial office is prohibited.
The most popular articles
Today, the Commission published a Communication which outlines the most serious tax problems that EU citizens face in cross-border situations and announces plans for solutions.
more »
The European Commission has opened a formal investigation under EU state aid rules to examine a number of support measures, including several capital injections and shareholder loans, that the Hungarian authorities granted to Malév-Hungarian Airlines in the context of its privatisation and subsequent renationalisation.
more »
Internet and lax customs enforcement drive growth of 600 billion US dollar counterfeit goods industry.
more »
350 million people rose out of poverty in the past decade, but 1.4 billion are still extremely poor, says the latest report into rural poverty.
more »
New plan sets out action to reach 75% employment target for the EU by 2020.
more »
Research Ministers of the EU Member States and Associated Countries, together with the European Commission, are announcing in Brussels today three new pan–European energy research infrastructures.
more »
Algirdas Šemeta, Commissioner for Taxation, Customs, Audit and Anti-fraud, is visiting Moscow today to discuss ways in which customs cooperation between the EU and Russia can be reinforced.
more »
Following on from Monday's debate with ECB President Jean-Claude Trichet, MEPs on Tuesday adopted a resolution, by a show of hands, gauging the ECB's performance in 2009 and suggesting actions to be taken in view of the economic situation.
more »
The European Parliament today approved €10.5 million in European Globalisation Adjustment Fund aid to over 3,000 people in the Netherlands who lost their printing and publishing sector jobs last year, due to the economic crisis.
more »
A diamond-studded gold coin engraved with a picture of the Taj Mahal and worth 100,000 euros is unveiled at the Paris mint.
more »