• [EN]
  • [FR]
  • [ES]

VAT in Czech Republic

VAT in Czech Republic

Updated on Wednesday 11th May 2016

Rate this article

based on 0 reviews

VAT-in-Czech-Republic.jpgCzech Republic applies the Value Added tax (VAT), as any other member-state of the European Union. The local authorities imposed three different VAT rates, applicable at a standard rate or at a reduced rate. Both local and foreign persons should be familiar with the VAT system available here, as it applies to all products and services traded on the Czech market. Our team of lawyers can assist persons who require an in-depth presentation on the VAT rates and VAT compliance

VAT rates in Czech Republic 

Companies with operations in Czech Republic will be imposed with a 21% VAT rate, which is the standard rate applicable to most products and services, taxable under the current law. 
Other types of business activities related to food products for children, various pharmaceuticals or book industry are taxed at a reduced rate of 10%. This tax was introduced starting with 1st of January 2015. 
Other services are taxed at 15%, if they refer to foodstuffs, water, public transportation, cultural and sports events, publishing industry or hotel accommodation; our team of Czech lawyers can offer more details on the all the services and goods taxed at a VAT of 15%

Tax compliance for Czech legal entities 

Czech companies are required to register for VAT purposes. Newly incorporated companies will receive a VAT number, which, in Czech Republic, is comprised of 10 characters, set out by the following formula: CZ + eight digits
As a general rule, companies have to comply for VAT returns purposes on a monthly basis, but the local legislation prescribes quarterly reporting if the turnover did not exceed CZK 10 million. Quarterly reports are not allowed in the first two financial years. Monthly reports have to be submitted no later than the 25th day of the month. It is important to know that the Czech legislation does not require annual fillings. 
After the company was registered for VAT, the investor will have to respect the accounting requirements (bookkeeping, invoice regulations). 
Persons who need further information on the Czech VAT can address to our law firm in Czech Republic


  • Alexander 2016-05-10

    It's a good aspect that the Czech authorities imposed a new reduced rate for specific products or services. The tax should promote the businesses set up in those fields, by encouraging consumption.

Comments & Requests

Please note that client queries should NOT be posted here but sent through our Contact page.