The Czech Republic has introduced a number of anti fraud measures on the trading of bitcoins.
This includes making the buyer of goods or services with bitcoin liable to VAT due if their vendors fails to pay the VAT over to the tax authorities.
The imposition of such a drastic measure may still be challenged at the European level as being excessive and disproportionate. It will also likely hamper the adoption and growth of digital currencies in the country.
Click for free Czech VAT info