On 10th of June, 2020, the National Assembly adopted at second reading amendments to the Value Added Tax Act (VATA), which reduced the value-added tax (VAT) rate to 9 % for the hotels, restaurants, food for babies and small children, baby diapers and baby hygiene items, books.
In particular, a rate of 9 % is provided for the delivery of paper books and e-books, incl. textbooks, cognitive books, and study sets, children’s books with illustrations for drawing or coloring, printed or handwritten music editions.
A rate of 9 % for VAT is adopted for accommodation provided in hotels and similar establishments, including the provision of holiday accommodation and rental of places for camping sites or caravans. A reduction in the rate of 9% is also introduced for restaurant and catering services, which consist of the delivery of prepared or unprepared food. The reduction does not affect alcoholic beverages, beer, and wine, which are served in restaurants or provided as part of a catering service.
The changes come into force on 01.07.2020 and will be applied until 31.12.2021.
They are part of the measures for support of certain sectors. The reduction of the VAT rate is not expected to lead to a reduction in prices.