VAT system in the Czech Republic

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The sales tax system in the Czech Republic is fully harmonized with the EU sales tax system.

Subject to Czech sales tax

  • the paid delivery of goods by a taxable person in the course of carrying out an economic activity with the place of performance in the Czech Republic,
  • the provision of a service against payment by a taxable person in the course of carrying out an economic activity with the place of performance in the Czech Republic,
  • intra-community acquisition against payment that is carried out in the Czech Republic by a taxable person in the course of carrying out an economic activity or by a non-taxable legal person,
  • import / import of goods against payment in the Czech Republic.

Taxable services in the Czech Republic are primarily services, deliveries of goods, transfer of usage rights, transfer of real estate, buildings and structures, purchase of goods from other EU member states, etc. In addition, the Czech VAT is also subject to the shipment of goods from / in Czech Republic.

In most cases, Czech VAT payers are entitled to claim input tax. Some services are exempt from VAT in the Czech Republic, i. H. exempt, there is no entitlement to a refund of input tax (e.g. health care, training, financial services, insurance and long-term rental of the property).

VAT rates in the Czech Republic

There are three VAT rates in the Czech Republic:

  • 21% for most goods and services;
  • 15% for some selected goods and services (including staples, heating, water);
  • 10% for books, health products, nutritional products for children.

The tax rate that is valid on the day on which the tax declaration obligation arises is applied to the taxable service. In the case of the assumed remuneration for the taxable service, the tax rate is applied that is valid for this taxable service on the day the tax declaration obligation arises from the assumed remuneration.

VAT returns in the Czech Republic

In principle, the calendar month in the Czech Republic is the tax period for sales tax. A VAT payer can choose a quarterly tax period, provided that certain conditions are met (e.g. if the turnover in the previous calendar year did not exceed CZK 10 million).

The VAT return may only be submitted electronically in the Czech Republic - via a so-called data box or with an electronic signature. In the case of IG deliveries, the summary report must also be submitted every month.

There is no annual VAT return in the Czech Republic. This is only submitted monthly, so one does not talk about a monthly VAT return, but rather about a VAT return in the Czech Republic.

In addition to VAT returns and summary reports, so-called control reports in the Czech Republic have also been required on a monthly basis since January 1, 2016 .

Control report in the Czech Republic

The control report is a special tax claim that does not replace any of the previous declarations and in which most transactions that are taxable in the Czech Republic are to be declared. Of the forms required so far, it only replaces the extract from the register for VAT purposes, which had to be submitted for transactions in the so-called local reverse charge (i.e. in particular for construction work and delivery of selected goods).

The control report must only be submitted electronically.

Obligation to register for VAT in the Czech Republic

There is no small business turnover limit for the obligation to register for VAT in the Czech Republic for natural or legal persons who do not have a registered office, permanent establishment or agency in the Czech Republic .

Foreign persons therefore have to register as so-called VAT payers in the Czech Republic, especially if:

  • the delivery of which is subject to Czech VAT (unless the obligation to register and pay for VAT is transferred to the recipient of the delivery) or
  • you have exported the goods from the Czech Republic to other EU countries.

Quite often the obligation to register for VAT is also caused by the operation of a warehouse in the Czech Republic or by shipping via the Amazon warehouse in the Czech Republic . Amazon dealers who are not located in the Czech Republic and who use the Amazon warehouse in the Czech Republic should register for sales tax in the Czech Republic before shipping begins. In this way, you can avoid the possible penalties that are otherwise imposed by the Czech tax office due to the late VAT registration or submission of advance notifications.

Under certain circumstances, companies that are not registered for VAT and that are subject to VAT due to purchased supplies are identified as subjects for VAT . These subjects pay the sales tax on the purchased supplies without the right to reclaim the input tax.

Individual evidence

  1. ↑ The Czech sales tax system
  2. ↑ EU sales tax system
  3. ↑ (under the limits of the individual member states , which cannot be exceeded, in the Czech Republic of 1.14 million CZK).
  4. ↑ http://www.financnisprava.cz/en/taxes/VAT-Control-Statement
  5. ↑ VAT registration | yourtaxes.cz. Retrieved October 22, 2019 .
  6. ^ Notice for non-established taxable persons. Retrieved October 22, 2019 .
  7. ↑ Article in IWB: Sales tax in the Czech Republic | yourtaxes.cz. Retrieved October 22, 2019 .