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
The EBRD is making a €4 million equity investment in Geofoto, a Croatian geodetic company offering mapping, geodetic survey, photogrammetry, geoinformatics and aerial survey services, to support its drive to expand operations on international level.
more »
Nordea came out of 2009 in an even stronger position, despite one of the most challenging years for decades. Risk-adjusted profit increased 22% and our capital position and cost of funding are among the best in Europe.
more »
MEPs gave the green light on Thursday for EU funding to help Europe's unemployed start up small businesses.
more »
MEPs are deeply concerned about the long-standing and growing presence of al-Qaeda, and the deteriorating security, social and economic problems in Yemen, which they think could destabilise neighbouring countries.
more »
At the start of a new decade, Sub Saharan Africa is reeling from the effects of three major global crises – food, fuel and financial – that have reversed many of the economic achievements of the last 10 years and left some growth projections at levels below those of 30 years ago.
more »
The 5th High-level Seminar of Central Banks in the East Asia-Pacific Region and the Euro Area was jointly organised by the European Central Bank and the Reserve Bank of Australia, in cooperation with the Hong Kong Monetary Authority.
more »
The EBRD and European Fund for Southeast Europe are boosting the availability of financing to private businesses in Moldova with a $10 million loan to ProCredit Bank in Moldova for on-lending to micro and small enterprises.
more »
The EBRD is supporting the development of the retail infrastructure in Croatia with a €68 million loan to finance the construction of a modern shopping centre in Split, the second largest city in Croatia.
more »
The European Bank for Reconstruction and Development has agreed to sell its 15 percent stake in OAO Swedbank Russia to its parent and major stakeholder, Sweden’s Swedbank AB, a move which would give it full ownership of its Russian subsidiary.
more »
The Ministers of Industry took the first steps in San Sebastián today to make the electric vehicle a reality in Europe and agreed that European institutions, with the EC at the head, should lead a common strategy on electric vehicles.
more »