Finance minister orders review of predecessor’s VAT waiver

Finance Minister Zbyněk Stanjura has ordered a review of his predecessor Anna Schillerová’s decision to waive VAT for gas and electricity in November and December of last year. The aim of the review is to check the legality of the decision, he said. By law, in order for the finance minister to waive VAT, the sharp rise in energy prices during the final quarter of last year has to be deemed an ‘extraordinary event’. Mr. Stanjura said on Thursday that the waiver also appeared to be in breach of EU law.

Extraordinary events that warranted a VAT waiver in the past have been, for example, the coronavirus pandemic, a tornado in South Moravia, or the war in Ukraine.

The ministry has said that the initiation of the review does not mean that VAT payers who benefitted from the waiver will have to repay anything at the moment.