Entities that have no seat, place of business, or fixed establishment in the Czech Republic are obliged to register for Czech VAT once they make a taxable supply in the Czech Republic on which they have to account for VAT.
There is no VAT registration threshold, and these entities cannot register voluntary. The foreign entity must submit an application for registration as a VAT payer within 15 days after they made the taxable supply – they become a VAT payer in the Czech Republic automatically – even without VAT registration.
A person who has a registered seat, place of business, or establishment in the Czech Republic is obliged to register for VAT if its turnover exceeds CZK 1 million in 12 consecutive calendar months. The Czech Ministry of Finance wants to change this VAT exemption to small businesses and increase the limits to CZK 2 million.
Even if the threshold is not exceeded, Czech and foreign entities can choose voluntary VAT registration in the Czech Republic.
There are also cases where the foreign entities do not need the VAT registration. E. g. in the situation where they use the VAT simplification.
VAT registration in the Czech Republic
The process of Czech VAT registration usually takes one or two months, depending of the quality of documentation provided to the tax office within the registration procedure. The tax office must understand the reasons for registration. The tax office then allocates a VAT Number (DIČ), which serves to identify payments from the payer. The validity of a VAT number issued by any EU Member State can be validated on the website of the European Commission. This number is automatically allocated to obligatory VAT payers. VAT payers pay the tax every month and they submit VAT return and VAT control statement in the same period. The tax is always due payable by the 25th day after the end of the taxation period. The VAT registered persons are obliged to issue tax invoices accroding to the Czech VAT rules.
Czech VAT rates are as follows:
- the second reduced rate amounts to 10 %,
- the first raduced rate is 15% and
- the basic VAT rate is 21%
(the VAT rates should change as of 1.1.2024)
YourTaxes.cz is happy to assist you with VAT registration in the Czech Republic so you can get your business off to the right start.
Get in touch, and we we'll be happy to guide you through the VAT registration process in the Czech Republic.
Amazon sellers in the Czech Republic
If you use the Amazon fulfillment center in the Czech Republic and you are obliged for VAT registration as Amazon seller in the Czech Republic, we can send you a special offer which you will find highly competitive. We have tailor-made services, not only for the VAT registration of Amazon sellers in the Czech Republic, but also for their liability to file VAT returns. The Amazon-sellers can find the list of transactions, that must be declared in their VAT returns in the Czech Republic also on our website.
The Amazon sellers should be also aware that all transactions that were declared in the Czech Republic before E-commerce reform must still be reported in the Czech Republic. Therefore the VAT registration for the Czech VAT is still necessary for all Amazon sellers.
Similar obligations as Amazon traders have also another traders using the warehouses of About You, Zalando etc. or importing goods to the Czech Republic or Slovakia.
Yourtaxes.cz – Your VAT registration in the Czech Republic or Slovakia