CZECH REPUBLIC

CZECH REPUBLIC (DPH)

Czech Republic  being an EU member state falls under the EU VAT regime. Member states must adopt EU VAT Directives into their own legislation.

Standard VAT Rate: 21%

Reduced VAT Rate: 10%, 15%

Registration Threshold Distance Selling: 1,140,000 CZK

EU VAT number format: CZ99999999 or CZ999999999 or CZ9999999999

Registration Threshold

Resident - CZK 1,000,000 (approx. EUR 40,000)                              
Non resident - There is no registration threshold                                  
IC Acquisitions - CZK 326,000 (approx.EUR 13,040)

VAT Registration

None, but a person VAT-registered in another EU Member State or a company from a third country with no seat, place of business or establishment in the Czech Republic must register for VAT if it:

• makes any supply that attracts Czech VAT (e.g. a supply with place of supply in the Czech Republic or to non-VAT payers, etc.);
• has acquired goods in the Czech Republic from another EU Member State (except cases where simplification such as triangulation, import/acquisition of goods applies);
• has delivered goods from the Czech Republic to another EU Member State;
• has exported goods from the Czech Republic to a third country;
• VAT establishment is created;

VAT Compliance

Detailed rules regulate reporting requirements of Czech transactions for Value Added Tax purposes. These include: invoice requirements, timeliness for an invoice to be issued, invoice and credit notes corrections rules, foreign currency reporting requirements and exchange rate sources, correction of previously submitted returns and accounting records that must be maintained for VAT purposes. From 1 January 2016 selected VAT registered entities will be obliged to submit a monthly “VAT Control Statement” i.e. the Control Form.

VAT Returns

Czech non-established business (e.g. branches or VAT establishments) files VAT returns on a quarterly basis only.
VAT group files VAT returns on a monthly basis only.

The time limit for filing the VAT return is 25 days after the end of the relevant taxable period.

Intrastat and EC Sales Lists

The Intrastat discloses details of movements of goods between Member States which take place for commercial reasons, recording the movement whenever goods enter the territory of czech Republic from other Member States or leave it to other Member States.
Declaration must be filed monthly once the annual threshold is exceeded.

Intrastat declarations can be submitted in paper format or electronically. Intrastat reports including more than 15 lines must be filed electronically. There four ways how to submit Intrastat electronically:

Customs' program IDES;
the web page of the Official Administration together with the e-signature;
the web application InstatOnline;
the web application InstatImport in case of more 500 lines per report.
Companies liable to file Intrastat reports electronically, which have been filing hard-copy Intrastat forms until now, should register for electronic filing at the relevant Customs Office by the end of January 2009 at the latest.

The due date for submission is the 10th working day following the reference period for paper filing and the 12th working day following the reference period for e-filing. E.g. for the January period, declarations must be submitted by the 10th and 12th working in February, respectively.