VAT registration threshold increase
There are multiple reasons why a country may want to increase its VAT registration threshold. In June, we communicated that the Bulgarian government raised the VAT registration threshold to combat rising inflation. The Czech government is proposing a bill to double the VAT registration threshold by a sizeable margin- from CZK 1 million to CZK 2 million (c. 85,000 Euros) per annum. The European Council has provided permission for the Czech government to raise its VAT registration threshold. If successfully implemented, this would take effect from 1st January 2023 until 31 December 2024. The threshold does not apply to non-resident businesses, who must register immediately if providing certain supplies.