Even following the VAT changes, Coolhousing is prepared for customers from all over the world
29.01.2015, 11:41
Prague January 29th (PROTEXT) - Coolhousing has brought its internal systems in line with the new VAT regulations. It remains prepared to provide services both to customers from the Czech Republic and to customers from other EU countries and from the rest of the world.
As of 1 January 2015, the rules for determining the location of taxable fulfilment for provision of telecommunication services, radio and television broadcasting services and electronic services have changed. The change also affects Coolhousing's services and in particular will affect billed VAT amounts, which will newly be collected at the rate applicable in the country of the customer's registered seat.
In the Czech Republic, the new rules are defined by Act No. 235/2004 Coll., the VAT Act, in connection with Annexe No. II of Directive 2016/112/EC. Under Regulation 282/2011/EU, Coolhousing as a provider is required based on information from the recipient (customer) to determine and through regularly used means to verify the customer's place of business and to collect and pay the correct VAT rate based on that location.
Although the new regulation does not require providers to make direct payments in the particular countries and payment via domestic tax authorities is sufficient, foreign customers still cannot avoid at least one major change: VAT for payment to revenue authorities abroad will be declared by Coolhousing in Euros, and it will also be necessary to collect it in Euros. The company will be required to issue customers with registered seats abroad invoices in Euros with calculation of VAT based on the applicable rates in the customer's home countries.
"Domestic customers will not notice this tax change. Foreign customers will be issued invoices in Euros, and depending on the amount of VAT in the particular country, the final price of the service may change by the difference in the VAT rate, which, however, as a provider we unfortunately cannot influence. Of course, we are not changing our prices without VAT," says Coolhousing Sales Manager Jiří Dvořák, commenting regarding the change.
Nothing will change for customers with their registered seats in the Czech Republic. The 21% VAT rate will remain in effect.
Jiří Dvořák, DiS.
Senior Sales Executive
T: +420 775 310 970
E: jiri.dvorak@coolhousing.net
COOLHOUSING s.r.o.
Vinohradská 1630/190