VAT in the Czech Republic

VAT in the Czech Republic

Amazon uses one of its warehouses also in the Czech Repubic, which is perfectly located in the middle of Europe. Does your company stock the goods or sells the goods via an Amazon´s fulfilment center in the Czech Republic? You might be considered by VAT registration at the Tax Authority in Ostrava which is locally competent for taxable persons without a registered office, a place of residence or an establishment in the country.

How to register for VAT in the Czech Republic

The person without a registered office in the Czech Republic must be registered, declare and pay VAT in the country when providing a taxable transaction here. For example:

A non-established taxable person supplies goods with the place of supply in the Czech Republic and the customer is not a registered payer.

Also EU deliveries from the Czech Republic to VAT registered business in other EU countries are a reason for compulsory VAT regsitration in the country.

Czech tax authority has officialy 30 days for attribution of the VAT ID number. But if the application with its annexes is correct, the tax authority gives the VAT ID numer within days.

Very often we also apply for backdated registrations which are possible. You will be asked to give proof of first sale or EU delivery from the Czech Republic to another EU country. The Amazon monhly VAT report and respective invoice are such a proof.

To get the VAT ID number, the original of extract of trade register and VAT certificate from home country are needed. These documents need to be provided with sworn translation into Czech language. Taxeedo can assist you with the sworn translation and take care of it.

VAT return deadlines in the Czech Republic

Periodical VAT returnes are generally filled and submitted to the 25th day of the month following the end of the tax period. This tax period is monthly.

Under some conditions, it can be changed to quartely period. The VAT payer can decide that his tax period for the current calendar year is a calendar quarter on specific legal conditions. The change of tax period cannot be made for the calendar year in which the VAT payer was registered or for the immediately following calendar year.

Payers are obliged to keep all data relating to their tax liabilities in records for VAT purposes, and must do so in the structure required for drawing up a tax return, recapitulative statement or control statement.

Penalities for any late submission are set by the Tax Authority.

VAT rates in the Czech republic

In the Czech Republic there are 3 different VAT rates:

  • Reduced VAT rate of 10% on baby food, some medicine, some printed books
  • Reduced VAT rate of 15% mostly on foodstuffs
  • Standard VAT rate of 21% on goods and services

VAT payment in the Czech Republic

The deadline for VAT payment in the Czech Republic is the same as for VAT filling. It is the 25th day of the month following the end of the tax period. And there are more 5 days accepted for the payment without any interests added.

The VAT is payable by standard SEPA payment to one collection bank account with IBAN CZ0207100007050077621761. Use your VAT ID number as reference (without the letters CZ).

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