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
Other types of business activities related to food products for children, various pharmaceuticals or book industry are taxed at a reduced rate of 10%.
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
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).