VAT in the Czech Republic
If you are a foreign company selling to or trading with the Czech Republic, you must comply with Czech VAT regulations, regardless of whether you sell to consumers, engage in B2B trade, or store goods in a warehouse within the country. The Czech Republic is not part of the eurozone, so VAT is calculated and paid in Czech koruna (CZK). The standard rate is 21%, and there is one reduced rate of 12% as well as a zero rate (0%) for selected goods. This page provides an overview of the rates, registration thresholds, reporting requirements, and the rules you need to know before commencing operations in the Czech Republic.
VAT rates and key figures in the Czech Republic
| Conditions | Details |
|---|---|
| Standard rate | 21 % |
| Reduced rate | 12% (a single reduced rate since 1 January 2024, when the previous rates of 10% and 15% were merged) |
| Zero rate (0%) | Applies to, among other things, books, e-books, newspapers, and periodicals, as well as certain forms of international passenger transport. |
| Registration threshold | Czech companies: CZK 2,000,000 in turnover per calendar year (approx. EUR 79,000), with an upper limit of CZK 2,536,500 (approx. EUR 100,000) triggering immediate registration. Foreign companies without a fixed place of business: no threshold; registration required from the first VAT-liable transaction. |
| Distance selling threshold (OSS) | EUR 10,000 in total for cross-border distance sales to consumers in the EU. |
| VAT number format | CZ followed by 8–10 digits, e.g., CZ12345678 (referred to as DIČ / DPH) |
| Reporting period | Monthly by default. Quarterly reporting may be permitted if the previous year's turnover was below CZK 10,000,000. Deadline: the 25th of the month following the period. |
| Fiscal representative | Not a requirement. The fiscal representation scheme does not exist in the Czech Republic. |
E-commerce and webshop for the Czech Republic
If you sell goods to Czech consumers via an online shop, the place of dispatch and your total EU distance sales turnover are crucial factors. If your total cross-border distance sales to consumers in the EU exceed the common threshold of EUR 10,000 per year, you must charge VAT in the customer's country. In this regard, you can benefit from using One Stop Shop (OSS), so you avoid having to register for VAT in each individual country and instead report your EU distance sales collectively.
However, the OSS does not cover everything. If you store goods in a warehouse in the Czech Republic—for example, via... Amazon FBA or another fulfillment center, the act of stocking the goods itself triggers an obligation to register for local Czech VAT. The same applies if you ship goods from the Czech Republic to customers in other countries. If you operate a Danish webshop selling to multiple EU countries, you can read more about the rules under Danish e-commerce to the EU.
B2B trade and reverse charge
In many cases, the reverse charge mechanism applies to sales made to VAT-registered businesses in the Czech Republic. This means that the responsibility for accounting for VAT shifts from you, the seller, to the Czech buyer, who calculates and reports the VAT themselves. This can reduce the need for local VAT registration. The Czech Republic also applies an extended reverse charge mechanism to certain services, including those in the construction sector. The specific rules depend on the nature of the transaction, and an incorrect assessment can lead to both demands for back-payment and fines. If you are unsure whether the reverse charge applies to your transaction, you should have this assessed before issuing an invoice.
VAT refund in the Czech Republic
Har din virksomhed haft udgifter i Tjekkiet, kan du i mange tilfælde få den betalte moms retur, selv om du ikke er momsregistreret i landet. Det gælder typisk udgifter til messer, konferencer, hotel, diesel og benzin, billeje, taxa, reklame samt køb af varer og ydelser. Refusion kræver, at ansøgningen indsendes korrekt og inden for fristerne, og at dokumentationen er i orden. Læs mere om VAT refund, eller kontakt os, så vurderer vi dit refusionsgrundlag.
How TIMEVAT helps you in the Czech Republic
TIMEVAT is a specialist firm focused on finance and exports, with many years of experience assisting companies with VAT, customs, and duties across Europe. We speak the language, understand Czech procedures, and act as your VAT representative in dealings with the authorities. We serve as your extended arm to the authorities and look after your business as if it were our own.
- Registration: We handle your Czech VAT registration from start to finish. Læs om registrering.
- Indberetning: We handle ongoing VAT filings, EU sales lists, and other reporting requirements. Read about reporting.
- Momsrefusion: We reclaim your foreign VAT and ensure correct documentation. Read about VAT refunds.
Do you need to get a handle on VAT in the Czech Republic?
Lad TIMEVAT tage hånd om registrering, indberetning og refusion, så du kan koncentrere dig om din forretning.
Contact us todayFrequently asked questions about VAT in the Czech Republic
What is the VAT rate in the Czech Republic?
The standard VAT rate in the Czech Republic is 21%. There is a single reduced rate of 12%, which covers items such as food, water supply, pharmaceuticals, and passenger transport. Certain goods, such as books, e-books, newspapers, and periodicals, are subject to a zero rate (0%).
When must a foreign company register for VAT in the Czech Republic?
As a general rule, foreign companies without a fixed place of business in the Czech Republic are not subject to a registration threshold and must register before carrying out their first VAT-liable transaction. This applies, for example, to imports, sales of goods within the country, or holding stock with Amazon. For Czech companies, an annual turnover threshold of CZK 2,000,000 applies.
What is the OSS threshold for sales to the Czech Republic?
For distance sales to consumers, the common EU threshold of EUR 10,000 applies. When your total cross-border distance sales to consumers in the EU exceed this amount in a calendar year, you must charge VAT in the customer's country. This can be handled centrally via the One Stop Shop (OSS) scheme.
How often must VAT be reported in the Czech Republic?
As a general rule, VAT is reported monthly. Quarterly reporting may be permitted if the previous year's turnover was below CZK 10,000,000 and other conditions are met. The deadline is the 25th of the month following the reporting period.
Does the Czech Republic require a fiscal representative?
No. The fiscal representation system does not exist in the Czech Republic, and neither EU nor non-EU companies are required to appoint a fiscal representative. However, TIMEVAT can act as your VAT representative and handle communication with the authorities.
What does a Czech VAT number look like?
A Czech VAT number consists of the country code CZ followed by 8 to 10 digits, for example, CZ12345678. It is called DIČ or DPH in Czech.
