TAX NEWS 31.7.2021
Summer holidays have entered their second half and we are reporting back to you with our regular information service in terms of July tax news:
OSS – news and practical experience
As of 1 July, significant EU-wide changes to the application of VAT with respect to mail order business have been implemented. For those of you impacted by these changes, we are bringing you a summary of our practical experience so far. Among things covered – we show you what the VAT tax return filed as part of OSS regime looks like or what should be the format of the tax payment, which will be made in EUR.
Increases in tax benefits, tax bonuses and social assistance for children
Towards the end of July, an amendment of Act on Social Assistance came into force which introduced also relating changes of Income Taxes Act. Changes will mainly be welcome by families with children due to the fact that tax credits for 2nd and any further child increase, along with changes to conditions for pay-out of tax bonuses. This increase will first impact employees via monthly payroll as of January 2022; however, the change will also be operational retroactively as of 1 January 2021 and implemented via 2021 payroll settlement. Changes in conditions for the pay-out of the tax bonus and increases to social assistance for children have also been implemented. You will find more information in our article.
Gifts for Southern Moravia and their tax treatment
The striking of South Moravia by a tornado has given rise to a huge tide of solidarity and companies as well as individuals started sending in financial as well as other forms of support. In many cases, a financial or tangible gift can be deducted from taxable income on a tax return. We have prepared for you a summary of conditions as to how you can deduct the gift on a tax return and which documents you will need to that effect.