VAT in Czech Republic guide

VAT rates

The following are the VAT rates:

• Standard rate: 21%
• Reduced rates: 15%, 10%
• 0% (zero-rated or exempt with credit).

The standard rate of VAT applies to all supplies of goods or services, unless a specific measure provides for the reduced rate or exemption.

Czech VAT for digital service providers

In case of digital services, telecom services or broadcasting services supplied in a B2B context, the place of supply is the place where the recipient is established. No Czech VAT should be charged, and reverse charge applies unless supplier and customer are established in Czech Republic. In case of digital services, telecom services or broadcasting services supplied in a B2C context we refer to the section on the Mini One-Stop Shop below for more information.

Mini One-Stop Shop

The optional simplification measure called the “Mini One-Stop Shop” (MOSS) with respect to digital services, telecommunication services and broadcasting services supplied in a B2C context. The supply of these services is generally considered as taking place in the Member State of the customer, not the Member State of the supplier.The MOSS scheme allows all taxable persons supplying digital services, telecommunication services or broadcasting services to nontaxable persons in EU Member States in which they do not have an establishment, to account for the VAT due on those supplies via a web portal in the Member State in which they are identified. The MOSS allows qualifying taxable persons to avoid registering in each Member State of consumption. The MOSS simplification is available both for taxable persons established in the EU and outside the EU. The MOSS generally mirrored the scheme that was in place for non-EU established suppliers of electronically supplied digital services, telecommunication services or broadcasting services supplied to final consumers. Persons already registered under the pre-existing scheme for electronically supplied digital services, telecommunication services or broadcasting services, should retain their existing individual VAT identification numbers for the purposes of the MOSS.

VAT Registration in Czech Republic

The obligation for VAT registration in Czech Republic might be triggered in different ways. Here is the the list of most common scenarios:

• Importing goods into Czech Republic from non-EU countries;
• Buying and selling goods in Czech Republic (excluding domestic reverse charge);
• Selling the goods from Czech Republic to customers in other countries (B2B or B2C);
• Acquiring goods in Czech Republic from another EU country (Intra-community acquisitions);
• Holdinging and storing inventory in Czech Republic for selling, distribution or consignment;
• E-commerce sales of goods to Czech Republic consumers, subject to Distance Selling VAT registration thresholds;
• Organising events in Czech Republic where attendees or delegates are paying admission.

Late – registration penalties

If a taxable person fails to register for VAT, it will be registered retrospectively. The tax authorities can impose a penalty for breaching non-monetary obligations. Moreover, they would assess sanctions if VAT returns and VAT ledgers are filed late or if payments of VAT liability are late.

Fiscal representation Czech Republic

The business which are selling in Czech Republic do not have an obligation to appoint a fiscal representative in Czech Republic.
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