Czech Republic Tax Guide

Overview

Tax name: DPH (Daň z přidané hodnoty - VAT)

Tax authority: Generální finanční ředitelství (General Financial Directorate) and local tax offices (Finanční úřad)

VAT Filing frequency: Monthly/Quarterly (determined by annual turnover - see Additional Requirements section)

Registration

Required documents:

• Up-to-date Certificate of Incorporation clearly showing the legal representative's name and their powers (individual or joint signatory rights)

• VAT Certificate (for EU established clients)

• Legal representative ID copy

• Translations of documents (where required for non-Czech documents)

• Registration form in XML format

• Power of Attorney signed by the client

Expected timeline:

Approximately 2 weeks Note: Standard administrative deadline is 30 days from application submission, which may be extended in complex cases

Registration thresholds:

• Local Czech companies: CZK 1,000,000 annual turnover threshold

• Foreign companies: No threshold (immediate registration required for taxable activities in Czech Republic)

• Exception: Companies performing only tax-exempt supplies without right to deduct are not required to register

• Special cases: Immediate registration required for:

  • Companies acquiring assets through privatization

  • Companies acquiring business from a VAT-registered entity

  • Non-resident companies providing taxable services or goods in Czech Republic

Transfer of Service

Required documents:

• Certificate of Incorporation (recommended for verification purposes)

• VAT Certificate (recommended if available)

• Power of Attorney signed by the client (this is the only document submitted to tax authorities)

Expected timeline: 1 working day

Online Credentials needed: Taxually's Czech Databox credentials for electronic submission. No credentials required from the client.

Special considerations:

• Power of Attorney becomes effective the day after submission

• If Power of Attorney is submitted on specific date, previous period may need to be handled by new service provider

• Returns can be submitted without valid Power of Attorney, but authorities will request proof of authorization within 8 days

• All tax authority correspondence will be sent to the address provided in registration

Filing Information

Filing deadline:

• Monthly/Quarterly: 25th of the month following the reporting period

• Annual return: Not existing

Payment deadline:

Same as filing deadlines (25th of the month following the reporting period)

Late filing penalties:

• VAT return: Late submission penalties and potential investigations - timely submission prevents issues

• EC Sales List: Normally none

• Local listing: Late submission penalties and potential investigations - timely submission prevents issues

• Local listing corrections: Automatic CZK 50,000 penalty for late corrections (can only be appealed in exceptional force majeure cases)

• Intrastat: Normally none - authorities are understanding, no deadline extension needed. However, for very long periods of non-filing, penalties up to CZK 1 million are possible (but uncommon)

Late payment interest: Timely payment prevents interest charges

Accepted payment methods: Bank transfer to tax authorities, or offset against reclaim amounts

Payment bank details: IBAN varies by region based on the competent main tax authority office. Payment reference should always be the taxpayer's Czech tax number without the CZ prefix.

Additional Requirements

Intrastat reporting:

Yes - CZK 15,000,000 (Arrivals) / CZK 15,000,000 (Dispatches) thresholds

• Deadline: 10th working day of the month following the reporting period

• Registration required when thresholds are exceeded

• Nil returns must be submitted when no transactions occur

Fiscal representation: Not required

Filing frequency determination:

• Default: All entities start with monthly filing frequency

• Quarterly option available in special cases:

  • Companies: Quarterly VAT return with monthly local listing and monthly EC Sales List

  • Resident individuals: Quarterly VAT return and local listing with monthly EC Sales List

• Intrastat: Always monthly regardless of other filing frequencies

VAT Rates:

• 21% - standard rate

• 12% - reduced rate

Refunds:

• Automatic in most cases with few exceptions

• Can also be used for payment offset when applicable

Useful Resources

Tax Authority website: http://www.financnisprava.cz

VAT registration information: https://adisepo.mfcr.cz/adistc/adis/idpr_pub/dpr/uvod.faces

Electronic filing portal: https://adisepo.mfcr.cz

Intrastat registration forms: Available through Czech customs authority online portal