Country Guide: Czech Republic


Looking to expand your e-commerce business to the Czech Republic, then look no further, here is AVASK's guide to VAT in the Czech Republic:

AVASK Accounting & Business Consultants provide information about VAT in The Czech Republic
Country Profile: Czech Republic

Czech E-commerce facts:

Population10.7 million
(January 2020)
Currency:Czech Koruna (CZK)
Number of e-commerce users:8.3 million
(January 2020)
Revenue in e-commerce market:£2.34 billion
Estimated market growth:4.6% to £2.68 billion by 2024

Czech thresholds and additional summary:

Distance Selling Threshold (DST)CZK 1,140,000
Intrastat Thresholds:

Dispatches:
CZK 12,000,000
Arrivals:
CZK 12,000,000

VAT number format:CZ 12345678
VAT return period:
(dependent on turnover)

Monthly: in excess of
CZK 10million

Quarterly: below
CZK 10 million

VAT return deadline25th day of the month following period end
Annual VAT filing deadline:Not required
EC sales lists reportingMonthly

VAT in the Czech Republic

The Czech Republic is a member of the European Union (EU) and draws up its tax rules according to the laws or directives issued from Brussels by the EU. The current VAT directive applies to all 27 member states of the European Union, and it governs the rules on VAT compliance, and in some part, covers the setting of VAT rates.

As an EU member state, the Czech Republic is obliged to implement the VAT directives, which provides guidance on VAT. Where there is a conflict, the European Union’s directive takes precedence. The Czech Republic is not a member of the Eurozone and uses its own currency, the Czech Koruna (CZK).  In the Czech Republic VAT is known as:  Daň z přidané hodnoty, or DPH.


VAT registration in the Czech Republic

Both EU and non-EU businesses may trade in the Czech Republic without establishing a local presence. This is known as non-resident VAT trading. There is no VAT threshold in the Czech Republic for the registration of non-resident traders, but you will need one to record transactions and your Czech customers will want proof that you have obtained one.

There are strict rules on the situations where VAT registration is permitted. Common scenarios that require Czech VAT registration include:

  • Importing goods into the Czech Republic;
  • Organising live events, conferences, etc. in the Czech Republic;
  • Holding goods in a warehouse in the Czech Republic as stock for resale;
  • Buying goods within the Czech Republic that are subsequently re-sold in-country;
  • Selling goods from the Czech Republic to other EU member states;
  • Distance-selling to private individuals in the Czech Republic, e.g. internet retailing or trading through an e-commerce platform.

Registering for VAT in the Czech Republic generally takes around a month once all documentation has been submitted to the tax authority, but this varies from seller to seller and will depend on the specifics of an individual company.

VAT compliance in the Czech Republic

There are detailed rules controlling the recording and processing of Czech transactions for VAT purposes. This includes guidelines on:

  • Czech invoice requirements;
  • When to issue a Czech tax invoice;
  • Foreign currency reporting;
  • Credit notes and corrections;
  • Correcting entries from prior returns;
  • Which accounting records must be maintained.

VAT rates in the Czech Republic

VAT Rate% Rate
Standard Rate21%
Reduced Rate15%
10%
Zero Rate0%

Need help expanding to The Czech Republic?

Contact AVASK's International Business Development Team Today!

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Tom Meek

International Business Development Manager

Location: Southampton, UK
Tel: +44 (0)23 8060 0120


Book an Appointment
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Christine Lawless

International Business Development Officer

Location: Southampton, UK
Tel: +44 (0)23 8060 0120


Book an Appointment
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Habib Bouzidi

International Business Development Officer

Location: Southampton, UK
Tel: +44 (0)23 8060 0120


Book an Appointment