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Czech Government Agrees to Delayed Introduction of DST and Reduced Rate

12 June 2020

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Proposed Changes

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Czech Rep

The ruling coalition of the Czech government has reportedly agreed to a delay in the introduction of the country's digital services tax (DST) to 1 January 2021, as well as a reduction in the proposed rate from 7% to 5%. This follows the recent launch of Section 301 investigations by the U.S. into the adopted and planned DSTs of several countries, including the Czech Republic. Legislation for the DST, which was introduced in January 2020, is currently pending before the Czech parliament. As provided in the draft submitted in parliament, the Czech DST would be levied on turnover from services...