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The increase in VAT in the Czech Republic against the background of stagnation in the real estate sector

28.04.2011
Homesoverseas.ru editorial office
245
An increase in VAT in the Czech Republic will negatively affect demand and worsen the situation in the country's stagnant real estate market, according to Global Property Guide.

In January 2010, the Czech government raised VAT by 1%, and its lower level was 10%, and the upper level was 20%.

The 10% tax is charged on goods such as groceries, medicines, books, new housing and services related to housing (water supply, heating).

A proposal was made to unify VAT at the level of 20% by October 2011, but in March it was decided to postpone these changes to 2013.

Now, according to the new plan, from January 2012, the lower VAT level will be 14%, and the upper one will remain at 20%.

By 2013, the lower level will rise to 17.5%.

These innovations are being discussed against the background of stagnation in the field of real estate in the Czech Republic throughout 2010 and the beginning of 2011.

In 2010, the total value of real estate purchase and sale transactions in the Czech Republic fell by 9%, and in 2009 - by 5%.

According to Global Property Guide.

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