Kofax has closely been monitoring the proposed VAT rate consolidation in the Czech Republic, a compliant territory for Kofax.

As a reminder, the Czech Republic currently accommodates 2 reduced VAT rates: the 10% and 15% rate. The Czech government has proposed that the two current reduced rates are consolidated into a single reduced VAT rate of 12%.

Subject to final approval and publication in the Official Gazette, the latter of which appears to be a formality only, this will mean the new, consolidated VAT rate will be effective from 1 January 2024.

Kofax is closely following the final approval and its subsequent publication in the Official Gazette. If confirmed, Kofax will initiate our standard process to support the new reduced VAT rate.

Kofax will communicate with impacted suppliers and buyers once the Czech government definitively confirms the reduced VAT rate consolidation.