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 financial and economic crisis has shown that reckless behaviour of banks and other financial institutions can have serious and costly consequences for Europe's economy and its people.
more »
Local services that create jobs and improve energy efficiency received a boost Thursday (2 September) when MEPs on the Industry, Research and Energy Committee approved plans for more investment.
more »
The European Commission approved the first financing decisions under the EUR 264 million 2010 allocation for the so-called Vulnerability FLEX mechanism to help the most vulnerable African, Caribbean and Pacific countries cope with the impact of the global financial crisis and economic downturn.
more »
The European Commission has today updated the list of airlines banned in the European Union to impose an operating ban on one air carrier from Ghana and to place operating restrictions on another air carrier from that country.
more »
The European Commission today approved an application from Denmark for assistance under the European Globalisation adjustment Fund (EGF).
more »
Algirdas Šemeta, EU Commissioner for Taxation, Customs Union, Anti-Fraud and Audit, will open tomorrow an international conference at the Shanghai World Expo 2010 on building bridges to facilitate trade between China and the EU.
more »
Moldova is set to receive an EU grant of up to €90 million to help it through the financial crisis, following a vote at Parliament's Committee on International Trade on Monday.
more »
Important notice: since May 2010 business surveys data are classified in accordance with an updated version of the Nomenclature of Economic Activities (NACE rev. 2) causing a potential break in series at this date.
more »
75% of Europeans think that stronger coordination of economic and financial policies among EU Member States would be effective in fighting the economic crisis, according to the Spring 2010 Eurobarometer, the bi-annual opinion poll organised by the EU.
more »
The European Commission has extended until the end of the year the liquidity support scheme for banks in Slovenia.
more »