The reverse charge regime for the supply of electricity and gas, and electricity certificates

Effective from 1 February 2016, the obligatory application of the tax reverse charge regime for VAT has been extended to other supplies. The regime will now apply also to supplies listed below if the place of the supply is in the Czech Republic and the receiver is a payer with respect to:

• the supply of electricity certificates; and

• the supply of electricity and gas via a system or network to a trader.

A trader is defined as:

• a person who buys gas or electricity, especially for the purposes of subsequent sale, and whose consumption of the goods is insignificant; or

• a person whose scope of business is transmission of electricity, distribution of electricity, trade with electricity, activities of a market operator, transportation of gas, distribution of gas, storage of gas, and trade with gas under the conditions stipulated by law.

The Ministry of Finance published detailed information on their web pages related to the application of the tax reverse charge on the above-mentioned supplies (here, in Czech only). We would like to draw your attention especially to the detailed information on stipulation of the trader and the definition of supply of electricity certificates.