4th January 2013

New VAT rules for businesses from 2013

From 1st January 2013, new rules for VAT must be applied in all Member States. These rules aim to simplify rules on VAT invoicing to reduce burdens and barriers for businesses. First, electronic invoicing will have to be treated the same as paper invoicing, enabling companies to choose the VAT invoicing solution that works best for them. This has the potential to save businesses up to €18 billion a year in reduced administration costs. Second, Member States will be allowed to offer a cash accounting option to small businesses with a turnover less than €2 million a year. This means that these SMEs will not have to pay the VAT until it has been received by the customer, thereby avoiding cash-flow problems for them.

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Members of the American Chamber of Commerce in the Czech Republic