Czech RepublicSalesTax VAT
The standard VAT rate in the Czech Republic is 21% since 1 January 2013. There are two VAT rates in the Czech Republic. A reduced rate of 15% on foodstuffs, livestock, water and domestic fuel, books and newspapers; construction; cultural and sports events; household services.
If a company is established in Czech Republic and is providing ‘taxable supplies’ of goods or services in Czech Republic, it may have to obtain a non-resident VAT registration. In accordance with the EU VAT Directive, foreign traders are legally obligated to register for VAT in certain circumstances in order to report taxable transactions and declare VAT that must be charged.
It is important that all businesses with any commercial activity in Czech Republic assess their compliance obligations and register prior to commencing taxable transactions if applicable.
There are various scenarios that would trigger an obligation to register for VAT in Czech Republic. Some of the most common examples are:
- Importing goods into Czech Republic from outside the European Union
- Buying and selling goods in Czech Republic
- Selling goods from Czech Republic which are delivered to customers outside of Czech Republic (business or private customers)
- Acquiring goods in Czech Republic from another EU country (Intra-community acquisitions)
- Holding inventory in Czech Republic for sale, distribution or consignment
- E-commerce sales of goods to consumers, subject to Distance Selling VAT registration thresholds
- Organising events in Czech Republic where attendees or delegates must pay admission
If you wish to apply for Sales Tax in the Czech Republic, please register in the form below the reasons for needing sales tax VAT in the Czech Republic or send us an email.