Governments Announces Reductions to Road Tax and VAT on Accommodation and Event Admission

On Monday, the government adopted a tax package that will reduce VAT (value added tax, also known as sales tax) from 15 to 10% on accommodation services and admission to cultural and sporting events. Road tax on trucks over 3.5 tonnes will also fall by 20%. The government will also waive social security contributions for small companies with up to 50 employees for the period from June to August. Photo: Minister of Labour and Social Affairs Jana Maláčová. Credit:

Czech Rep., May 25 (BD) – The 10% VAT rate should also apply to businesses such as saunas and fitness centres.

The government also approved a waiver on social security contributions for companies with up to 50 employees from June to August. However, in return employers must not lay off more than a tenth of their workforce, and must not reduce wages for the summer months compared to March.

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