In early September, the Government of the Czech Republic received from the Ministry of Finance draft legislation for the introduction of a temporary digital services tax, which was first announced in April 2019.

According to the Finance Ministry, the scope of the tax is based largely on the European Commission’s proposals for an temporary EU digital tax, which will apply to revenues from online advertising, the sale of user data, and intermediation services, by companies with a global turnover of EUR750m (USD825m) or more and realizing sales in the Czech Republic of at last CZK50m (USD2.1m) per year. The DST will only apply to revenue from intermediation services if the platform has in excess of 200,000 users, will be imposed on a calendar year period, and will be payable three months after the end of the tax year, the ministry said.

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