The e-commerce market in the Czech Republic is growing, providing opportunities for online businesses to tap into a large and growing consumer market. VAT registration in the Czech Republic can increase the credibility and competitiveness of businesses operating in the country, as well as simplify tax collection.
Maria
Last updated on February 8, 2023
The following article answers the most important questions about VAT registration in the Czech Republic.
Who needs to register for VAT in the Czech Republic?
If you meet any of the following requirements, you must register for VAT in the Czech Republic:
Do you store goods in the Czech Republic?
- Storing goods in an EU country requires you to register for VAT in that country.
- VAT registration limit for CZ based companies is 2 000 000 CZK for 12 consecutive months
- Regardless of whether the warehousing takes place independently or through a fulfillment provider that stores the goods in warehouses in Austria, the seller is responsible for VAT registration himself.
- In some cases, further submission of VAT and tax returns is also necessary.
You sell goods to Czech end consumers, crossing the EU long-distance sales threshold
- From July 2021, VAT registration in the EU countries you sell to is mandatory if distance sales within the EU exceed the new euro threshold.
- Distance sales below that threshold do not require additional VAT registration.
- The same applies to businesses registered for OSS, with goods then subject to country-specific VAT rates.
What information is required for VAT registration in the Czech Republic?
For registration, the tax authorities will require special registration forms, which will be filled out and submitted together with the following documents:
- VAT certificate from your home country (must be issued within the last 6 months)
- Official certificate of company registration (must be issued within the last 6 months)
- Official company certificate confirming the company’s current directors (must be issued within the last 6 months)
- An extract from the business register confirming the validity of your companies
- Confirmation of bank account details. Company name, address and bank account number should be mentioned.
- If you already store in the Czech Republic, you need proof/proof of trade (proof that the goods were delivered to the Czech Republic). Please read this article to generate proof of trade.
Depending on the genre of the company.
- Certificate of Incorporation / Articles of Association
- Company house certificate
How long does it take to register for VAT in the Czech Republic?
Average VAT registration period is 30 days after submission of documents.
What numbers will I receive when I register?
When a business registers for value added tax (VAT) in the Czech Republic, it will receive the following number:
- VAT identification number (VATIN). A VAT identification number, also known as a DIČ or “dic”, is a unique identifier assigned to a business by the Czech tax authorities. VATIN must be included in all invoices and VAT returns submitted by the company.
What is the format of the Czech VAT registration number?
| Name: | Tax identification number (DIČ) |
| Country code | CZ: |
| Format: | CZ + 8, 9 or 10 digits |
| For example: | CZ12345678, CZ123456789 or CZ1234567890 |
How high are the tax rates in the Czech Republic?
The standard VAT rate in the Czech Republic is 21%.
Reduced VAT rates of 15% apply to certain goods and services, including basic foodstuffs, water supplies, certain types of medical and educational services, and books and newspapers. A reduced VAT rate of 10% applies to pharmaceutical products and baby food.
Can I register for OSS instead of VAT registration in the Czech Republic?
Yes, you can choose to register for a single window (OSS) instead of registering for value added tax (VAT) in the Czech Republic. However, this is only applicable to the non-EU scheme, as EU-based companies must be OSS registered in their home country.
How can I register or find out if I need to register in the Czech Republic?
This is something we can help you with.
You can book a free consultation with us if you are not sure whether you need registration in Slovakia. Together we will assess your situation and give you advice.
We can help you get VAT registration if you know you need it. For more information, please see our internal pricing and contact our sales team.