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!
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.
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:
Taxable persons include:
Last Updated: 01/01/2022
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|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
|Standard 21%; Reduced 15% and 10%|
|Zero-rated (0%) and exempt|
|Frequency||Monthly or quarterly|
|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|
The recently published financial bulletin from the Czech Republic includes the decision to waive certain VAT penalties in an attempt to reduced the effects of Covid19 on businesses.
On 1 January 2021, the changes brought about by the amendment to the VAT Act shall take effect, according to which the identified person is obliged to file tax returns electronically