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VAT in the Czech Republic in 2022

We offer a comprehensive up to date guide

VAT is a tax that is levied on the majority of business-to-business and business-to-consumer transactions in all of the European Union’s member states and an increasing number of other nations.

It is vital for cross-border commerce that businesses maintain compliant VAT registration profiles and that VAT obligations are met accurately and on time.

Everything you need to know about VAT registration, returns, Tax Representation (if applicable), and your legal duties in the Czech Republic is conveniently located right here!

vat-guide-czech-republic

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Introduction to VAT in the Czech Republic

The Czech Republic joined the EU VAT regime in 2004 and is now a member of the EU single market economy. VAT Directives released by the EU lay forth the fundamentals of the VAT regime that each member country must apply. These Directives supersede any local legislation.

 

The Czech Republic’s Tax and Customs Authorities are in charge of administrative monitoring of Czech VAT. The Moravian-Silesian Tax Authority is the tax authority in charge of entities that are not based in the Czech Republic.

 

Locally referred to as “Daň z přidané hodnoty (DPH),” Czech Republic Value Added Tax VAT is a sort of indirect consumption tax levied on the value-added to products or services, specifically at various points of the supply chain.

Scope of Taxation

Economic activity refers to independent commercial activities as well as the continual exploitation of tangible and intangible assets to generate revenue, including the practice of a profession. Under Article 2(1) of the Czech VAT Act, taxable transactions include:

 

  • Supplies of goods, for consideration by a taxable person acting as such, with the Czech Republic as the place of supply.
  • Supplies of services for consideration by a taxable person acting as such with the Czech Republic as the place of supply.
  •  Intra-Community acquisitions by a taxable person or non-taxable legal person for remuneration, and acquisitions of new means of transport from another Member State for consideration by a non-taxable person.
  •  Imports of goods into the Czech Republic.

 

Taxable persons include:

 

  • Independent entities who carry out economic activity.
  • Non-commercial entities such as public bodies carrying out an economic activity that compete commercially.

Last Updated: 01/01/2022

Disclaimer

The information provided by Global VAT Compliance B.V. on this webpage is intended for general informational purposes only. Global VAT Compliance B.V. is not responsible for the accuracy of the information on these pages, and cannot be held liable for claims or losses deriving from the use of this information. If you wish to receive VAT related information please contact our experts at support@gvc.tax

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Czech Republic –  General VAT information

 

National Legislation Ministry of Finance of the Czech Republic
VAT in local languages “Daň z přidané hodnoty (DPH)”
VAT number format

 

CZ+8 digits for legal entities
CZ+ 9 or 10 digits for entrepreneurs
CZ12345678
CZ123456789
CZ1234567890
VAT rates

 

Standard 21%; Reduced 15% and 10%
Zero-rated (0%) and exempt
Frequency Monthly or quarterly
Thresholds
Registration
Established CZK 1,000,000
Non-established None
Intra-Community acquisitions CZK 326,000
Intra-EU Distance sales and electronically supplied services to consumers (OSS) CZK 258,000 (EUR 10,000)
Recovery of VAT by non-established businesses Yes
Compliance Returns and Deadlines
VAT Return 25th day following the end of the filing period
EC Sales List 25th day following the end of the filing period
Cumulative Statement 25th day following the end of the filing period

 

Contact GVC for your Czech VAT Compliance