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Obligation to label business premises by the identification number of the establishment as well as obligation to use this number in a business contact ceased as of the end of June 2012. Marking the establishment outside with the business name or entrepreneur´s name, surname and his identification number is sufficient now. Naturally, the entrepreneur may use the identification number of the establishment if he wishes as the Trades Licensing Office will continue to assign the identification numbers and enter them into the Trade Register.

| 2. Extension of the scope of the Central Registration Point

Now, entrepreneurs are able to use their local trades licensing office as the Central Registration Point for all requests and for other state authorities. These requests are no longer subject to current submission to the local trades licensing office. Entrepreneurs thus do not have to travel to various institutions located at different addresses and in some cases also save money for administrative fees.

| 3.Obligation to notify change of place of business at the current change of the residence

From the end of the June of this year entrepreneurs can ask for a trade licensing office to change their place of business automatically when entrepreneurs change their residence if it is same as the place of business.

| 4.Continuing of trade if the entrepreneur dies

The smooth continuation of the trade after the death of entrepreneur is also regulated in the amendment. There are newly defined groups of person who are entitled to continuation of the trade until the end of probate proceedings. These persons are the administrator of the heritage, the heirs of the law, the heirs of the will, the surviving spouse or partner if he is co-owner of assets used to operate the business and the insolvency administrator. It also clearly defines the legal status of these persons.

As already mentioned, the aim of the amendment is the simplification of procedures not only at the beginning but also during the business according to the explanatory memorandum. Nationwide, entrepreneurs should save up to two hundred and fifty million Czech crowns per annum due to this amendment.

Refund of VAT paid in another EU Member States by the Czech taxpayers

Refund of VAT paid in another EU Member State by taxpayers registered in the Czech republic is regulated by Act No. 235/2004 Coll., on VAT (hereinafter referred to as the “VAT Act”). Deadline for submission of the Request for VAT refund is 30th September 2012.

| 1. Who is entitled to a VAT refund?

Every taxpayer is entitled to a VAT refund if in the VAT refund period, he or she:

	is a taxpayer in accordance with the VAT Act,
	has seat, place of business or fixed establishment in the Czech Republic,
	does not have seat, place of business or fixed establishment in the state where the taxpayer request for VAT refund.

| 2. How can a tax payer ask for VAT refund?

First of all, a taxpayer must submit an Request for creation access to “the Application for VAT refund in electronic form”.

Second step is submission of a Request for VAT refund latest by 30th September of calendar year which is following the VAT refund period, i.e. in case of VAT paid during the year 2011 latest by 30th September 2012. Request must be submitted electronically via the portal managed by General Financial Directorate. The request shall be passed to the competent authorities from other EU Member state if it is justified. The request shall be judged according to the rules valid in the relevant EU Member State.

| 3. Refund of VAT paid in the Czech Republic by persons registered in other EU Member States

30th September is also deadline for submission of request for refund of VAT paid in the Czech Republic by persons registered in other EU Member States, which did not have seat, place of business or fixed establishment in the Czech Republic. Person registered in other EU Member State must submit request for refund of VAT paid in the Czech Republic via electronic portal in its domestic EU Member State. This request must be in Czech language.

Appropriate authorities could require copy of the invoice or import document where the tax base

	exceeds the equivalent 250 EUR of fuel,
	exceeds the equivalent 1000 EUR of other acquired goods or received services.

VAT refund period may be maximum one calendar year and minimum three calendar months, respectively shorter period if it is rest of the calendar year.

Request may be submitted in the amount

	higher than the equivalent of 400 EUR for a period shorter than one calendar year and not shorter than three months or
	higher than the equivalent of 50 EUR for a period of one calendar year or for a period shorter than three months if it is rest of a calendar year.

For currency conversion the exchange rate set by the Czech national bank as of the first working day of January of the year for which Request is submitted is used.

Appropriate authorities are required to notify approval or rejection of a Request to the applicant within four months from the date of receiving a Request. This deadline may be extended when the authority asks the applicant for additional information.

Since the process of submission of VAT refund request is somewhat complicated, it is recommended to use the assistance of an international tax advisory company such as Baker Tilly Czech Republic.