10 Czech Republic | Commentary

Option to tax

10 Czech Republic | Commentary

Option to tax

Under certain conditions, a VAT registered business (VAT payer) can opt to tax a supply of real estate or non-building land that qualifies for exemption, provided the customer agrees that the supply can be subject to the option to tax.

If the supplier opts to tax a supply of real estate to another VAT registered business (VAT payer), the customer is required to account for the VAT by the local reverse charge mechanism.

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