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Czech Republic: bill for digital services tax not approved

In 2019, the Czech government submitted a digital services tax bill to the Czech Chamber of Deputies.

This new tax was to apply to income from targeted advertising and income from the sale of data when the source of the income was a Czech user using a digital interface operated by a foreign company. The tax was also to apply to foreign platform operators’ income generated from the mediation of sales of goods or services in the Czech Republic.

This bill passed through its first and second readings, but time ran out before the third reading. As a consequence, the Czech Chamber of Deputies did not approve the bill before the end of the parliamentary term.

Any proposal for a digital services tax will have to go through the entire legislative process again if the new government wants to introduce a tax on digital services.