VAT registration in the Czech Republic: VAT payer and identified person

Who must register for VAT in the Czech Republic

Value added tax (DPH) is paid by entrepreneurs whose turnover over 12 consecutive calendar months exceeds CZK 2,000,000. After exceeding the limit you must file a registration application within 15 days after the end of the month in which the limit was exceeded. For some activities and transactions the status may be needed earlier.

If your turnover is below the limit, you can register voluntarily — for example to reclaim VAT on incoming invoices or so that EU clients see you as a VAT payer.

VAT payer or identified person

VAT payer (plátce DPH)

Issues invoices with VAT, reclaims input VAT and files regular returns. Suitable for businesses with large purchases, traders and anyone whose turnover exceeds the limit.

Identified person (identifikovaná osoba)

A status for entrepreneurs who are not required to be VAT payers but receive services from foreign suppliers in the EU or buy goods in the EU above a certain limit. An identified person cannot reclaim input VAT but must report certain transactions. Many IT and marketing freelancers start with this status.

VAT rates and key rules

• The standard rate is 21 %, the reduced rate is 12 % (certain categories of goods and services).
• If you supply goods or services to companies in other EU countries, reverse charge often applies (the customer pays the tax) and the invoice is issued without Czech VAT. This requires the customer’s valid VAT number.
• For online sales to consumers in the EU, the OSS (one stop shop) regime lets you report EU VAT in a single return in the Czech Republic.

VAT reporting

A VAT payer files a return (přiznání k DPH) by the 25th day of the month following the reporting period (month or quarter). In addition, a control statement (kontrolní hlášení) and — for supplies to the EU — a recapitulative statement (souhrnné hlášení) are filed. Everything is submitted electronically, and the tax office charges penalties for delays.

We prepare and file the reports and tell you the payment amount and due date in advance. More on the monthly work on the bookkeeping page.

How we get VAT registration for a client

First we analyse your activity and clients to choose the right status. Then we prepare the application and supporting explanations, file them via the tax office’s electronic system and follow up until the DIČ is assigned. After that we verify the number in VIES and set up your reporting calendar.