When do I need to register for VAT in the Czech Republic?
1. Storing goods and 2. Exceeding the VAT delivery threshold.
Storing goods in Czechia
If you are storing goods in the Czech Republic, you need to register for VAT there.
You need a VAT registration in other EU countries when you want to store goods there.
You are obligated to register for VAT in the Czech Republic when you store goods in the country, even in Amazon fulfilment centres.
If you store goods with the Central European FBA programme in the Czech Republic, Poland and Germany, a VAT registration is mandatory in all three states.
VAT Threshold Limit
If you are selling to Czechia and exceeding the VAT threshold limit, you need to register for VAT in the Czech Republic.
In addition to storage, it is mainly reaching the VAT registration threshold of a country which requires online sellers to register for VAT in additional EU countries.
This VAT threshold is a limit set by each country above which local VAT registrations become mandatory. How do you reach this limit? For this, the turnover from exports to the target country within a calendar year is considered. The VAT Threshold limit in Czechia is 1.140.000 CZK.
Example: An online seller is selling to Czechia but is registered in Germany. As soon as he exceeds the threshold limit with sales from Germany to the Czech Republic, he becomes liable for VAT in Czechia and needs to register for VAT.
A VAT registration in the Czech Republic is necessary or has been in the past? No need to worry!
We from hellotax handle your VAT registration while you can continue your business as you like. Contact us or check out all our services.
New regulations for delivery threshold limits as from July 1, 2021
There will be new regulations regarding the delivery threshold limits in the European Union. From July 1, 2021 the new regulations will come into effect and from this point on, there will be an EU-wide VAT threshold of €10,000. Once having reached this limit with sales to one or various EU member states, sellers will need to register for VAT in all countries they are selling to.
Storing goods is still a reason for VAT registration.
How does the registration process work in the Czech Republic?
To register for VAT in the Czech Republic you need to fill in the online application form. Note that the website and the form are only available in Czech language. Once you filled it in you send a signed hard copy together with other documents required to the following address:
Financni urad pro hlavni mesto Prahu
111 21 PRAHA 1
The Czech Republic
If you want to automate your VAT duties in the Czech Republic, simply use our VAT automation tool. We take care of your VAT registrations, VAT returns, correspondence with the authorities and much more!
Which additional documents are required to register for VAT
in the Czech Republic?
To register successfully for VAT in the Czech Republic you must add extra documents to your application form. The extra documents you have to attach to your VAT registration can vary from country to country. Sometimes they need to be translated.
If you want to register for VAT in Czechia, you need to provide the following documents:
- An extract from the company’s national trade register
- VAT certificate to prove the business is registered for VAT elsewhere in the European Union
- Licence to execute economic activities
Some of the required documents need to be translated into the Czech language by a sworn translator!
Frequently Asked Questions
How does the format of a Czech VAT registration number look like?
|Name||Daňové identifikační číslo (DIČ)|
CZ + 8/9/10 digits
CZ12345678, CZ123456789, CZ1234567890
What are the different VAT rates in the Czech Republic?
The standard VAT rate in the Czech Republic is 21%. It applies for taxable goods and services. The reduced rate of 15% taxes for example non-alcoholic beverages or take away food. 10% are taxed on some newspapers and periodicals or some pharmaceutical products. The tax rate of 0% applies for intra-community transport.
What are the tax periods for my VAT returns in the Czech Republic?
You normally file your VAT returns in the Czech Republic monthly. If you company has been registered for at least three years and has an annual turnover of less than CZK10,000,000 (ca. €388,000) you can file your VAT return quarterly.
When are the deadlines for my VAT returns in the Czech Republic?
The deadline for any Czech VAT filing is always the 25th of the months following the tax period. The monthly filing for January is due until February 25, the quarterly filing of the first quarter is due until April 25.
How long do I have to wait for my Czech VAT registration number?
After all the documents are submitted to the authorities and the registration process is completed, it takes about 2 weeks until you receive your Czech VAT number.