All regulations related to Czech Republic VAT are governed by the VAT Act, which has been in force since 1994. It primarily contains the most important requirements arising from EU directives on VAT matters.
All regulations related to Czech Republic VAT are governed by the VAT Act, which has been in force since 1994. It primarily contains the most important requirements arising from EU directives on VAT matters. As a member of the EU, the Czech Republic is thus obligated to strictly comply with these requirements. These rules relate primarily to registration, declaration and compliance with Czech VAT. The VAT Act is strictly controlled by the Czech Ministry of Finance. This body is responsible for overseeing the consumption tax system and regularly issues guidelines and instructions that support the correctness of the Act.
Vat in Czech Republic — should you register for Czech VAT?
Any foreign company that offers to sell goods or services on the local market is required to register for Czech VAT. The Czech Republic being a member of the EU, like other countries of the community, requires registration for VAT in situations typical for this process:
- import of goods into the Czech Republic,
- dispatch (sale) or acquisition (purchase) of goods from other EU countries (intra-Community sale),
- all trade, purchase and sale in the Czech Republic,
- Sale of goods to local customers on the basis of consignment storage agreements on the territory of the Czech Republic,
- reservation of the local distance selling threshold in the Internet sales of goods to Czech consumers,
- organization of live events (with paid admission), including exhibitions, conferences, concerts,
- supply of goods on own account.
Since the 2010 VAT-EU package came into force, there are not many situations that would require foreign companies to register for VAT in Czech Republic. When supplying electronic, broadcasting or telecommunications services to Czech consumers, you should be aware that you must register for VAT under the MOSS system.
What are the Czech VAT registration thresholds?
Foreign companies trading in the Czech Republic that have registered for VAT/GST in their home country are subject to a zero VAT registration threshold. EU-registered companies that engage in online sales to Czech consumers are subject to an annual VAT registration threshold of CZK 1,140,000.
What information is required to obtain a Czech VAT number and registration?
Appropriate forms and provision of the following documentation is required from the Czech tax office:
- confirmation of registration of the company for VAT purposes in a place other than the EU territory confirmed by a VAT certificate (if applicable),
- business licence,
- extract from the National Trade Register of the company.
These documents should be translated into Czech using the services of a sworn translator.
Where do I submit my Czech VAT registration?
In order to register as a Czech VAT payer, it is necessary to submit an online application (in Czech) and then to sign a paper copy confirming electronic submission of the application.
What is the format of the Czech VAT number?
Registration takes approximately 30 days. After the registration is completed, the company will receive a unique Czech VAT number. All European Union countries have their own format for this number. The Czech prefix is abbreviated CZ.