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
President of the Republic of Lithuania Dalia Grybauskaitė welcomed the decision taken by the U.S. Government to transport shipments for the international mission in Afghanistan by transit via the Klaipėda Seaport.
more »
EU Solidarity Fund aid to repair storm damage in France and Portugal was approved by the Budgets Committee on Thursday.
more »
The European Investment Bank and the Government of Samoa formally agreed to support the rehabilitation and upgrade of independent water schemes in the Pacific island state under a EUR 250,000 technical assistance programme.
more »
Steps to overhaul the European Union's flagship single market were discussed on Tuesday (9 November) by MEPs and interested parties.
more »
Strategy to secure a sustainable EU energy supply and support economic growth over the next decade.
more »
EU funding to help 850 former workers in the aircraft maintenance industry around Dublin find new jobs was approved by the European Parliament on Thursday.
more »
Saffron farmers in western Afghanistan hope to oust opium as a harvest crop.
more »
The European Commission has approved an application from Poland for assistance from the European Globalisation adjustment Fund (EGF).
more »
New plans for EU industry to create jobs while keeping manufacturing in Europe.
more »
The European Commission has approved two applications from Spain for assistance from the EU Globalisation Adjustment Fund (EGF).
more »