The Government has approved the expansion of the local reverse charge mechanism to new types of selected commodities. With effect from 1 July 2015, the reverse charge mechanism shall apply to all cereal and technical crops, including oil seeds, as specified under the customs nomenclature codes included in Chapter 10 and 12, which simultaneously meet the definition provided by the relevant Government Decree (e.g. wheat, rye, barley, buckwheat, millet, oat, rice, sunflower seed, flax and sesame seeds and seeds of certain herbs, soya beans, etc).
The reverse mechanism is applicable only if the total amount of the tax base of all delivered selected commodities exceeds the limit of CZK 100,000.
The local reverse charge is applicable only in case that the place of taxable supply is in the Czech Republic and the supply is realized between VAT payers.
The application of the local reverse charge in case of sugar beet is effective from 1st September 2015.