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Czech VAT Information

If you are a foreign/cross-border business selling or planning to sell goods or services in the Czech Republic, you may be required to register for VAT with the Czech Tax office.

You can always review the latest Czech VAT regulations on the Czech Tax Office website.

Czech VAT Information

Czech Republic introduced VAT in 1993, called Dan z pridane hodnoty or DPH. As a member of the European Union (EU), Czech Republic has fully incorporated all EU VAT Directives into Czech VAT laws. The Czech VAT law covers all details of VAT registrations, compliance, returns, intrastat and other related requirements. The Czech Ministry of Finance, Financni Sprava, are responsible for regulating the VAT regime.

 

The standard VAT rate in Czech Republic is 21%, however, some specific goods and services are charged at a reduced rate of 15% and 10%. These are as follows:

Some foods, some medical equipment, some transportation, some hotel accommodation, restaurants, books, newspapers, magazines, agricultural products, etc..

When Should You Register?

If you are a foreign / cross-border company providing taxable supplies in Czech Republic, you may be required to register for VAT and comply with all associated accounting and payment requirements. 

Czech VAT returns are submitted monthly. However, if the annual VAT returns are under CZK 10,000,000, then the entity can apply to submit returns quarterly. 

Monthly VAT returns must be filed by the 25th of the month following the end of the tax period.

Quarterly VAT returns must be filed by the 25th of the month following the end of the tax period.

All Czech VAT obligations must be paid to the Czech tax office bank account by the filing deadline. Electronic payments are accepted.

VAT info Menu

 

Europe

Austria

Czech Republic

France

Germany

Italy

Netherlands

Poland

Spain

Slovakia

Sweden

United Kingdom

Middle East

Dubai / UAE

Egypt

Saudi / KSA

Americas

Canada

Mexico

United States

Asia

China

Japan

Czech Intrastat

Movement of goods between Czech Republic and other EU States must be reported through intrastat declerations.

 

The threshold for both intrastat arrivals and dispatches is CZK8,000,000 per year.

Intrastats should be filed monthly on the 12th of the month following the movements.

Czech Republic does not require fiscal representation for VAT. However, all communication with TAX authorities, including registering for VAT and filing VAT returns, must be done through a Czech DataBox. Therefore you may require a local representative with access to a DataBox in orde to register and file VAT returns.

VAT Registration Associated Fees and Timelines

* Notes: 

All fee includes: VAT registration, documents translation, certification, fiscal representation and handling notification services.

The registration time scale is estimated and calculated from the time when all required documents have been received and relies on the current workload of the local tax authorities. 

Price are in EUR. Prices exclude EORI application, EC Sales list and intrastat filing. 

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Frequently Asked Questions

Question: Under what circumstances may A fine be incurred after registering a Czech VAT?

Answer: If there is a false positive or supplementary report at the time of filing, the foreign company may be penalised. Late submission or non-registration for VAT will result in a penalty based on the possible loss of income, up to a maximum of 300,000 CZK. Underreporting and non-declaration will result in a 20% penalty for additional taxes. In addition, the penalty for late vat payment, in the Czech Republic, is more complicated, which is 16% of the tax payable, then divided by 365 days of the year, multiplied by the number of days paid late.

Question: What can be used as tax information in the Czech Republic?

Answer: In the Czech Republic, there are strict regulations on the layout and format of VAT records kept by companies or their tax agents. 
There are detailed regulations governing the recording and processing of Czech transactions. These include the following guidelines:

  1. Czech invoice requirements, including electronic invoices

  2. Foreign currency reports and translated materials

  3. Correct the erroneous information of the previous return

  4. Credit notes and corrected information

  5. Accounting records must be kept. 

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