Last month, Kofax communicated that the Czech Republic Parliament had approved a VAT rate consolidation, taking effect from 1 January 2024. The VAT rate consolidation introduces a new reduced VAT rate of 12% in the Czech Republic, which in turn will abolish the current reduced VAT rates of 10% and 15% in the country.

To this effect, the Czech President has signed the law confirming the VAT rate consolidation into effect on 22 November 2023. The legislative process will conclude with the publication in the Official Gazette, which is expected to be a formality only.

Kofax is compliant in the Czech Republic, and Kofax will accommodate the new reduced rate of 12% as part of our Czech e-invoicing solution. The new 12% reduced VAT rate will be available on the Tungsten Network portal for supplier selection from 1 January 2024, and we have contacted Integrated Solution suppliers to facilitate the new reduced VAT rate.

The reduced rates of 10% and 15% will remain integrated in the Tungsten Network system, if required, for the facilitation of credit and debit notes.