Czech VAT - a complete guide

Do you ship goods to customers in the Czech Republic? Find out whether you need to register for Czech VAT. In our guide, you will find information on VAT rates in the Czech Republic, registration thresholds and more.

VAT in the Czech Republic - table of contents:

Preparing to join the European Union in 1994, the Czech Republic had already introduced a value-added tax system a year earlier. Czech VAT is locally known as Dan z pridane hodnoty.

All regulations related to the Czech value-added tax are governed by the VAT Act, which has been in force since 1994. It primarily incorporates the essential requirements stemming from EU directives on VAT. By being a member of the EU, the Czech Republic commits to adhering strictly to these regulations. These principles mainly concern registration, declarations, and compliance with the Czech VAT.

The VAT Act is closely monitored by the Czech Ministry of Finance. This authority is responsible for supervising the consumption tax system and regularly issuing guidelines and instructions to support the proper implementation of the Act.

Should you register for Czech VAT?

Any foreign company that offers the sale of goods or services in the local market is obligated to register for VAT. As a member of the EU, the Czech Republic, like other member countries, requires VAT registration in typical situations for this process, for example:

import of goods into the territory of the Czech Republic,
shipment (sale) or acquisition (purchase) of goods from other EU countries,
consignment storage within the Czech territory,
organization of live events (with paid admission), including exhibitions, conferences, concerts,
exceeding the threshold of 10,000 euros from the sale of goods or services to EU consumers.

Since the implementation of the EU VAT package in 2010, there haven’t been many situations requiring foreign companies to register for the purpose of paying VAT in the Czech Republic.

What are the Czech VAT registration thresholds?

Foreign businesses trading in the Czech Republic that have registered as VAT/GST taxpayers in their home country are subject to a zero VAT registration threshold.

Important!

Entrepreneurs providing services and selling goods online to consumers in the EU, whose turnover from such sales exceeds 42,000 PLN ( for all countries), instead of registering for Czech VAT, can register for VAT OSS.

What information is required to obtain a Czech VAT number and registration?

The following forms and documents are required from the Czech Tax Office:

confirmation of company registration for VAT purposes in a location outside the EU confirmed by a VAT certificate (if applicable),
permission to conduct business activities,
extract from the national trade register of the company.

The aforementioned documentation should be translated into Czech by a sworn translator.

Where is the Czech VAT registration submitted?

To register as a Czech VAT taxpayer, you need to submit an online application in Czech and then sign a paper copy to confirm the electronic submission.

What is the format of the Czech VAT number?

The registration takes around 30 days. Once completed, the company receives a unique Czech VAT number. Each EU country has its own format, and the Czech prefix is CZ

Country code: CZ

Format: 12345678 123456789 1234567890

Number of characters: 8, 9, or 10.

Czech VAT rates

RATE	TYPE	TYPE OF GOODS OR SERVICES
21%	standard	all goods and services not covered by the lower VAT rate,
12%	reduced	food products (excluding items for children and gluten-free food) takeaway food, water, medical equipment for people with disabilities, car seats for children, admission to cultural events, performances, and amusement parks, social housing, repairs and renovations of private apartments, some agricultural articles, accommodation in hotels, admission to sports events, using sports facilities, social services, funeral and cremation services, medical and dental care, housekeeping services, some pharmaceutical products, gastronomic services provided in restaurants and cafes,
12%	reduced	food products (selected items for infants and gluten-free food, newspapers and magazines, some pharmaceutical products,
0%	zero	intra-community and international transportation some books (including e-books).

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Author: Lucy Adams
She has extensive knowledge in the field of accounting and constantly gains experience working for both small businesses and larger corporations. Her mission is to explain complex financial and accounting issues and teach business owners and those interested in the subject how to manage their finances effectively. She enjoys giving practical advice, discussing current accounting issues, and analyzing legislative changes that may affect business operations. She enjoys a straightforward approach to finance that helps entrepreneurs focus on growing their businesses. She translates complex issues into easy-to-understand language so that anyone can confidently make decisions that impact the success of their business.
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