The Czech Republic is planning to introduce a new reduced value added tax (VAT) rate of 10% in addition to the current 15% reduced rate. The standard VAT rate is 21%. The 10% reduced rate would apply to books and medicines. The implementation of the new reduced rate will likely be in 2015, but will depend upon the Czech Republic 's ability to make progress in lowering its budget deficit to below 3% of GDP as per Euro currency requirements.