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Czech Government Approves Final Draft Bill for Digital Services Tax — Orbitax Tax News & Alerts

The Czech Ministry of Finance announced on 18 November 2019 that the final draft bill for the introduction of a 7% digital services tax (DST) has been approved by the government and will be submitted in parliament. The design of the DST is largely unchanged from earlier proposals ({News-2019-09-09/P/2-previous coverage}), although the threshold for sales in the Czech Republic has been increased to CZK 100 million and an activity threshold is added to provide that the DST will not apply for companies whose share of revenue from taxable services in the EU does not exceed 10% of total revenue in the EU. The final draft also includes a time limit for the DST, which provides that the last taxable period in which the DST will apply is 2024.