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Czech VAT Rates
Navigating the complexities of Value Added Tax (VAT) can be challenging, but with this guide, you’ll gain a clear understanding of the VAT system in the Czech Republic.
Whether you’re a business owner or simply interested in the intricacies of Czech VAT, we’ve got you covered – no jargon, just the essentials.
What are the Czech VAT rates?
The Czech Republic offers several VAT rates for different goods and services:
- Standard Rate (21%): This rate applies to most taxable goods and services.
- Reduced Rate (12%): Certain items like foodstuffs, non-alcoholic beverages, selected baby food, newspapers, periodicals, and some pharmaceutical products.
VAT exempt goods and services in the Czech Republic
Certain categories are exempt from VAT in the Czech Republic, including:
- Healthcare Services: Medical treatments and related services are VAT-exempt.
- Education: Educational services provided by eligible institutions do not include VAT.
- Financial Services: Banking and insurance services are typically exempt from VAT.
How do I register for VAT in the Czech Republic?
There’s a lot to consider before registering for VAT in the Czech Republic.
VAT registration threshold
- If your business has no physical presence in the Czech Republic, but you make taxable supplies there, you must register for Czech VAT.
- If your business stores goods in the Czech Republic (even via a fulfillment provider), you must register for VAT in that country.
- The VAT registration threshold for Czech-based companies is 2,000,000 CZK in 12 consecutive months.
Filing VAT returns in the Czech Republic
Czech VAT returns must be filed and tax paid within 25 days after the end of the taxable period.
The standard VAT reporting period in the Czech Republic is one month – but businesses with a turnover of less than CZK 10,000,000 in the preceding year can choose to file quarterly returns after being VAT registered for three years.
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