The Czech VAT Act was amended as of 29 July 2016 with the introduction of the reverse-charge mechanism for certain supplies of goods. Additionally to the supply of services, the supply of goods to a taxpayer by a person, who is not established in the Czech Republic and not registered as VAT payer is subject to the reverse charge mechanism.
Possibility for deregistration.
Any VAT payer is not allowed to deregister if he has made supplies in the Czech Republic in the previous 12 months. However, foreign entities registered as VAT payers are able to instantly deregister even if they have made supplies in the previous 12 months, provided they currently realize only supplies that would otherwise be subject to the reverse-charge regime. There is, however, a transitional period of six months (ending at 29 January 2017) after which the instant deregistration is not allowed (i.e. only the general rules for deregistration will be applicable).
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