VAT
Value Added Tax (VAT) is a tax that is paid by anyone purchasing most goods and services within a given country. It is also known as a universal or general tax. In the Czech Republic, VAT was introduced on January 1, 1993.
The principle of VAT is that if the supplier is registered as a VAT payer, they must remit a portion of the value of the goods or services, if the transaction is subject to tax. The buyer can, under certain conditions, request a refund of the VAT they paid to the supplier upon purchase.
VAT is one of the most significant sources of revenue for the state budget.
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