Reduced VAT rates for restaurant services

The Czech Association of Hotels and Restaurants (AHR CR) welcomes the success achieved by Mr. Miroslav Kalousek, Czech Minister of Finance, in enforcing the reduced VAT rates for the restaurant services in terms of all the EU member countries. This is a measure that will not only help strengthen up the economies of the EU member states, but will also rectify a perceived discrimination represented by some countries having benefited from this exemption while others not. In the Czech Republic, the introduction of a reduced rate would at the same time alleviate another discrepancy subsisting in the operators of restaurants actually buying groceries at a 9% VAT rate and, having processed them, selling them at an output rate of 19%.

Mr. Pavel Hlinka, President of the AHR CR, observed on the topic: "We view this step as being an accommodating decision that will help maintain viability of many restaurants and preserve numerous jobs in the tourism sector across the European Union member states. The first move has been successfully made. At the same time, it is important for us to make sure that the reduced VAT rates for restaurant services do apply also in the Czech Republic".

Contact: Václav Stárek