Czech Republic to Lower VAT Rate on Restaurants and Beer

The Czech Republic will lower value-added tax on restaurant services and draft beer, under a bill approved Sept. 13 by the country’s parliament.

The VAT rate for “eat-in” meals and non-alcoholic drinks will drop to 10% from 15% and the rate on draft beer to 10% from 21%. “‘To-go” orders will still be taxed at 15%.

• The reduced rates will take effect either April 1 or May 1, depending on how quickly the legislative process moves.
• Lower rates will benefit international restaurants and fast-food chains like McDonald’s Corp., KFC, and Starbucks Corp.
• How much companies save will depend on ...