{"id":12949,"date":"2025-02-06T15:03:54","date_gmt":"2025-02-06T15:03:54","guid":{"rendered":"https:\/\/axevera.com\/?p=12949"},"modified":"2025-02-07T14:17:06","modified_gmt":"2025-02-07T14:17:06","slug":"tax-and-labor-news-2025-all-changes-on-vat-labor-crypto-and-the-flat-rate-regime","status":"publish","type":"post","link":"https:\/\/axevera.com\/en\/2025\/02\/06\/tax-and-labor-news-2025-all-changes-on-vat-labor-crypto-and-the-flat-rate-regime\/","title":{"rendered":"Tax and Labor News 2025: All changes on VAT, Labor, Crypto, and the Flat-Rate Regime"},"content":{"rendered":"\n

Discover the new Tax and Regulatory Rules for Businesses and Professionals in 2025<\/strong><\/h2>\n\n\n\n

The year 2025 brings significant tax and regulatory updates that will impact businesses, freelancers, and self-employed workers. During a webinar hosted by the Italian-Czech Chamber of Commerce and Industry<\/strong>, Dr. Piero Giovannini<\/strong> outlined the main upcoming changes. These updates range from VAT modifications<\/strong> to changes in the flat-rate tax regime<\/strong>, as well as new regulations on cryptocurrencies and labor law<\/strong>.<\/p>\n\n\n\n

If you are an entrepreneur, freelancer, or consultant, staying informed about these changes is essential to optimize your tax management and avoid penalties. In this article, you will find everything you need to know about the new 2025 regulations<\/strong>.<\/p>\n\n\n\n

Continue reading to explore all the updates in detail.<\/p>\n\n\n

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VAT Changes: New rules for Businesses from 2025<\/strong><\/h2>\n\n\n\n

Starting January 1, 2025<\/strong>, important VAT<\/strong> rule updates will come into effect.<\/p>\n\n\n\n

New method for VAT Revenue Calculation<\/strong><\/h3>\n\n\n\n
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  • The revenue threshold for VAT qualification will no longer be calculated based on a rolling 12-month period but rather on the entire calendar year<\/strong> (January 1 – December 31).<\/li>\n\n\n\n
  • If a business exceeds 2 million CZK<\/strong> in revenue in the previous year, it will become VAT-liable from January 1 of the following year<\/strong>.<\/li>\n\n\n\n
  • If the revenue exceeds 2,536,500 CZK<\/strong>, the VAT registration will be mandatory from the second day after exceeding the threshold<\/strong>.<\/strong><\/li>\n<\/ul>\n\n\n\n

    Introduction of the Cross-Border Small Business Status<\/strong> (SME = Small Medium Enterprise)<\/strong><\/h3>\n\n\n\n

    From 2025<\/strong>, a new status called Cross-Border Small Business<\/strong> will be introduced. Businesses with revenue under 2 million CZK<\/strong> can register under this status and operate with EU counterparts VAT-exempt<\/strong>, just as they do within their domestic market.<\/p>\n\n\n\n

      \n
    • These businesses will receive a specific DI\u010c code with the prefix “EX”<\/strong> to distinguish their tax-exempt transactions.<\/li>\n\n\n\n
    • Similarly, cross-border small businesses from other EU countries<\/strong> with an “EX” identifier can conduct VAT-exempt transactions<\/strong> with Czech counterparts.<\/li>\n<\/ul>\n\n\n\n

      This simplification<\/strong> allows micro-enterprises engaged in cross-border trade<\/strong> to remain competitive in the European market<\/strong> without the burden of VAT registration<\/strong>.<\/p>\n\n\n\n

      Other VAT Modifications<\/strong><\/h3>\n\n\n\n
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      • The national reverse charge<\/strong> will be extended to industrial and general cleaning services.<\/li>\n\n\n\n
      • Deduction of VAT<\/strong> on purchase of goods and services must be claimed within 2 years from the relevant date (and no longer 3 years).<\/li>\n\n\n\n
      • The deadline for correcting the taxable amount for an invoice included in a periodic VAT return will be extended from 3 to 7 years.<\/li>\n\n\n\n
      • Car VAT deduction<\/strong>: Possible modification or abolition of the 2,000,000 CZK<\/strong> deduction limit for company vehicles by 2027<\/strong>.<\/li>\n<\/ul>\n\n\n\n

        VAT on Real Estate Transactions (Effective July 1, 2025)<\/strong><\/h3>\n\n\n\n
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        • First Sale VAT<\/strong>: A 21% VAT rate<\/strong> will apply only to the first sale<\/strong> of a completed property within 23 months of its approval or official authorization for use<\/strong>.<\/strong><\/li>\n\n\n\n
        • Subsequent Sales<\/strong>: Any sales occurring after 23 months<\/strong> or subsequent resales will be VAT-exempt<\/strong>, with no right to deduct VAT on related costs<\/strong>.<\/strong><\/li>\n\n\n\n
        • Substantial Modification Criterion<\/strong>: If a renovation increases a property’s value by at least 30% of its sale price<\/strong>, <\/strong>it will be classified as a substantial modification.<\/strong>\n
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          • If sold within 23 months<\/strong> after renovation, it will be subject to a 21% VAT<\/strong>.<\/li>\n\n\n\n
          • If sold after 23 months<\/strong>, it will be VAT-exempt<\/strong>.<\/li>\n<\/ul>\n<\/li>\n\n\n\n
          • Reduced VAT for Social Housing<\/strong>: If more than half<\/strong> of a building’s total area is used for social housing<\/strong>, construction and renovation work will qualify for a reduced 12% VAT rate <\/strong>instead of 21%. <\/strong>The key condition for this reduction is that the building must be registered as social housing<\/strong> in the cadastral records.<\/li>\n\n\n\n
          • Taxation of Building Land<\/strong>: The sale of building land<\/strong> will remain subject to 21% VAT<\/strong>. The classification of “building land” will be based on municipal resolutions defining urban zoning<\/strong>or construction permits<\/strong> issued for building on the land.<\/li>\n<\/ul>\n\n\n\n

            Tax Declaration Individuals and Legal Entities 2025<\/strong><\/h2>\n\n\n\n

            The tax return for 2024 income<\/strong> must be submitted by the following deadlines:<\/p>\n\n\n\n

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            • April 1, 2025<\/strong> \u2013 For paper submissions.<\/li>\n\n\n\n
            • May 2, 2025<\/strong> \u2013 For electronic submissions.<\/li>\n\n\n\n
            • July 1, 2025<\/strong> \u2013 – For those who use a licensed tax advisor in Czech Rep.<\/li>\n<\/ul>\n\n\n\n
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              New Capital Gains Tax Regulations (2025)<\/strong><\/h2>\n\n\n\n

              From 2025<\/strong>, the Czech Republic introduces new rules on the taxation of capital gains on sales of assets that are part of personal (non-business) wealth:<\/p>\n\n\n\n

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              • Taxation<\/strong>: Capital gains will be included in taxable income<\/strong> and taxed at progressive PIT rates of 15% or 23%<\/strong>, with no separate capital gains tax.<\/li>\n\n\n\n
              • Exemptions<\/strong>: Capital gains from the sale of personal assets (not business-related)<\/strong> can be tax-exempt<\/strong> if they are not sold for speculative purposes<\/strong> and meet minimum ownership periods<\/strong> defined by law.<\/li>\n\n\n\n
              • New Annual Cap<\/strong>: A maximum threshold of 40 million CZK<\/strong> will apply to gross capital gains from share disposals<\/strong>. Any income exceeding this limit will be subject to standard progressive taxation<\/strong>.<\/li>\n<\/ul>\n\n\n\n

                This reform aims to regulate capital gains taxation<\/strong> while maintaining favorable conditions for long-term investors<\/strong>.<\/p>\n\n\n\n

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                Determination of Taxable Income in 2025<\/strong><\/h2>\n\n\n\n

                No major changes were introduced to corporate tax regulations<\/strong> in 2025, but tax returns for 2024<\/strong> will, for the first time, be subject to the 21% corporate income tax (CIT)<\/strong>.<\/p>\n\n\n\n