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Czech Republic: New VAT obligations for nonresidents effective January 1

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The Czech Financial Administration issued a notice outlining new administrative obligations for nonresident taxpayers registered for VAT in the Czech Republic. The new rules, effective January 1, 2026, aim to improve communication between the tax authority and nonresident taxpayers.

Key obligations and clarifications:

  1. Authorized agent requirement:

    • Nonresidents must appoint an authorized agent for service in the Czech Republic unless they have a local data box.

  2. Eligibility of agents:

    • The notice specifies who may serve as an authorized agent, ensuring that the person or entity can properly receive communications on behalf of the taxpayer.

  3. Email address requirement:

    • VAT registration applications must now include a valid e-mail address for communication purposes.

  4. Data box exception:

    • Nonresidents with an active data box in the Czech Republic are exempt from the requirement to appoint an authorized agent.

  5. Change of agent:

    • A new agent must be appointed within 30 days if:

      • The prior agent’s authorization expires, or

      • The taxpayer’s data box becomes inaccessible.

  6. Penalties for noncompliance:

    • Starting October 1, 2026, nonresidents who fail to appoint an authorized agent as required may face daily fines of 1,000 Czech koruna (approximately US$46).

    • A transitional period applies until September 30, 2026.

These changes emphasize the importance of maintaining proper communication channels with Czech tax authorities and introduce financial penalties to enforce compliance.

Source: gov.cz

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