In 2012, the first stage of the budget reform prepared by Finance Minister Miroslav Kalousek enters into force. The adopted reform provides for a two-stage introduction of a flat VAT rate (probably 17.5%) by 2013.
For this reason, in 2012 the reduced VAT rate will be increased by four percentage points to 14%. Basic rate - 20% does not change. Products and services subject to a reduced rate (passenger transport, food, medicines, social housing, books, culture) will not change either.
When issuing invoices, pay close attention to the date of sale. Goods and services sold in the previous year, or those for which the payment was made in 2011, we settle with the old VAT rate, even if the invoice itself is issued in the New Year.
In connection with the update of statistical data on average salary in the country, contributions for compulsory retirement and health insurance will slightly increase. The minimum advance payment of social insurance from the month of contribution settlement for the previous year is CZK 1,836 (change by 29, -). Persons paying sickness insurance from February 2012 should increase the minimum contribution to CZK 115 (from the previous 92, -).
The minimum advance payment for health insurance from January 2012 (payable until February 8, 2012) is CZK 1697 and is 27 crowns higher.