This email address is being protected from spambots. You need JavaScript enabled to view it.

    +32 2 351 26 00

Czech Republic


News & Tips

Introduction of a VAT Control Statement

As from 01/01/2016, all companies VAT registered in Czech Republic will have a new obligation to submit by electronic means data in the VAT Control Statement. Sanctions from 1.000 CZK to 50.000 CZK will be applicable in case of failure to do so.

To receive a sample of “VAT Control Statement” in English, This email address is being protected from spambots. You need JavaScript enabled to view it. .


New reduced VAT rate

A second reduced VAT rate of 10% will be implemented in the Czech VAT Act as from January 1st, 2015.


Local reverse charge on specific goods

As from 01/04/2015 [originally 01/01/2015], a new reverse charge mechanism will be applicable for domestic sales of mobile phones, games machines, laptops, tablets and computer chips, cereals and industrial crops, raw and semi-processed metals, including defined precious metal exceeding CZK 100,000. Regarding sugar beets, reverse charge will be applied as of 01/09/2015. Since 01/01/2016, parties can opt to conclude an agreement on the application of a reverse charge mechanism with no limit on the good's value.


Reduced VAT rate for catering services

As from 01/12/2016, VAT rate on catering services will be reduced from 21% to 15%.


 More VAT News & Tips - Czech Republic

DOING BUSINESS IN CZECH REPUBLIC [CZ] - VAT GUIDE

 

General

VAT Directive

Czech Republic

What is the structure of the VAT number?

Each individual VAT identification number shall have a prefix in accordance with ISO code 3166 - alpha 2 - by which the Member State may be identified.

 

Czech VAT numbers have 10 characters [CZ + 8 digits] for legal persons.

Verify CZ VAT numbers

What is the local name of the tax?

 

Dan z pridané hodnoty [DPH]

 

VAT rate

VAT Directive

Czech Republic

 VAT rates

Member States must apply a standard VAT rate [not lower than 15%] which must be the same for the supply of goods and for the supply of services.

Member States may apply either one or two reduced rates [not lower than 5%] only to supplies of goods or services as listed in the Annex III of the VAT Directive.

 

Czech Republic applies a standard VAT rate of 21% and two reduced rates of 10% [since 01/01/2015] and 15%.

 

See VAT rates applied in the EU.  

VAT return

VAT Directive

 Czech Republic

How is the tax period determined? 

The tax period shall be set by each Member State at one month, two months or three months.

Member States may, however, set different tax periods provided those ones do not exceed one year. 

Monthly/Quarterly

Your company has to report its VAT position by filing periodical VAT returns on a monthly basis [standard tax period].

Quarterly reporting period may be allowed provided the turnover in the previous calendar year did not exceed CZK 10 million. This option is however not possible for the first two years after registering for VAT.

 

 

When should periodical VAT return be filed?

The VAT return shall be submitted by a deadline to be determined by Member States.

That deadline may not be more than two months after the end of each tax period.

 

Periodical VAT returns must be filed by electronic means [since 1/1/2014] to Czech VAT authorities before the 25th day of the month [25 of N+1] following the tax period [month/quarter] to which it relates.

Statement

VAT Directive

Czech Republic

Annual recapitulative statement

Is this requirement laid down in the country and what is the filing deadline?

Member State may require taxable persons to submit a return in respect to all transactions carried out in the preceding year.

That return shall provide all the information necessary for any adjustments.

 

No

Your company is not required to file any summarizing annual VAT return in Czech Republic.

Recapitulative statement of intra-EU supply of goods [European Sales Listing - ESL]

Are quarterly filings allowed by the country and what is the filing deadline?

The recapitulative statement shall be drawn up for each calendar month.

However, Member States, in accordance with the conditions and limits which they may lay down, may allow taxable persons to submit the recapitulative statement on each calendar quarter where the total quarterly amount of intra-EU supplies of goods does not exceed either in respect of the quarter concerned or of any of the previous four quarters the sum of € 50.000 or its equivalent in national currency.

The recapitulative statement shall be submitted within a period not exceeding one month.

 

The recapitulative statement [ESL] must be drawn up for each calendar month and must be submitted to local VAT authorities by the 25th of the month after the end of the reporting period [month].

Filing the statement on a quarterly basis is not possible.

Payment

VAT Directive

Czech Republic

What is the payment deadline?

Any taxable person liable for the payment of the VAT must pay the net amount of the VAT when submitting the VAT return. 

Member States may, however, set a different date for payment of that amount.

 

 

The VAT due should be paid by the filing deadline for the VAT return [25th of the month following the tax period].

Are interim payments required?

Member States may require interim payment to be made.

Interim payments are not required in Czech Republic.

 

VAT refund

VAT Directive

Czech Republic

VAT refund for companies VAT registered in the country.

Is any VAT credit automatically carried forward or refunded?

Where, for a given tax period, the amount of deductions exceeds the amount of VAT due, the Member States may, in accordance with conditions which they shall determine, either make a refund or carry the excess forward to the following period. However, Member States may refuse to refund or carry forward if the amount of excess is insignificant.

 

There is no automatic carry-forward mechanism in Czech Republic.

Refund is done immediately [generally within one month from the deadline for submission of the VAT return] provided that the amount exceeds CZK 100.

Special measures for foreign companies

VAT Directive

Czech Republic

Optional reverse charge [art. 194 of the VAT Directive] for non-resident supplier.

SUPPLY OF GOODS

Member States in which the VAT is due may provide that the person liable for the payment of VAT is the person to whom the goods or services are supplied where the transaction is carried out by a taxable person who is not established in the country in which the VAT is due.

Yes

A new general reverse charge mechanism has been introduced and is applicable to all domestic supplies of goods performed by a company which is not established nor VAT registered in Czech Republic and provided the customer is a VAT registered Czech taxpayer. Foreign companies currently VAT registered are therefore no longer required to be VAT registered and can start the VAT deregistration process within six month.

Optional reverse charge [art. 194 of the VAT Directive] for non-resident provider. 

SUPPLY OF SERVICES

Member States in which the VAT is due may provide that the person liable for the payment of VAT is the person to whom the goods or services are supplied where the transaction is carried out by a taxable person who is not established in the country in which the VAT is due.

Yes

Reverse charge is applicable to all domestic supplies of services provided the customer is VAT registered [regardless established or not] in Czech Republic.

Do special arrangements apply to "call-off-stock"?

 

Yes

Special arrangements apply for call-off-stock. Foreign taxpayers are therefore not required to be registered in Czech Republic provided the conditions are met.

 

Triangulation can be applied when the middleman (B) is VAT registered [as a non-established company] for others supplies in the 3rd country [Member State of destination]?  

 

 

VAT on import

VAT Directive

Czech Republic

VAT warehousing regime

Member States may exempt the importation of goods and the supply of goods which are intended to be placed under warehousing arrangements other than customs warehousing.

 

No

Czech Republic has not introduced VAT warehousing regime.

VAT on importation – Postponed accounting via the VAT return.

Is it possible for a company to pay the import VAT via the periodical VAT return?

Member States may provide that VAT on importation does not need to be paid at the time of importation on condition that it is entered as such in the VAT return  to be submitted.

 

Yes

 Postponed accounting via the VAT return is automatically applied provided the importer is registered for VAT purposes in Czech Republic at the time of import. 

Miscellaneous

VAT Directive

Czech Republic

Intrastat Threshold  

Dispatches: CZK 8.000.000

Arrivals : CZK 8.000.000

 

Distance Sales - Threshold  

CZK 1.140.000

See various thresholds applied in the EU

 

Ministry of Finance   website

 Go back Up

OUR SERVICES

BENEFIT FROM

  • A global solution that cares for your business
  • VAT expertise in the 28 Member States
  • Single point of contact for VAT compliance across Europe
  • Multilingual team [English, French, Spanish, Portuguese, Italian, Dutch]

Do you want to know more about us ?

Scroll to top