VAT in the Czech Republic in 2022
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!
Selling in the Czech Republic?
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.
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 |
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