VAT registration in the Czech Republic

Registration of a company as a VAT payer in the Czech Republic has a number of advantages in certain cases, for example:

the right to receive compensation from the statefor purchases, intended for economic activities;

when importing goods to the Republic VAT is not being payed;

a company or individual entrepreneur can buy goods in foreign countries without VAT.

A company can register as a VAT payer in two cases:

1 - by the letter of the law, in obligatory order

2 - at own request of a legal entity or an individual

In what cases does the law oblige you to become a VAT payer? - If the turnover exceeds 1.000.000 CZK during 12 calendar months.

In this case, the company or entrepreneur must register as a VAT payer in the department of the Ministry of Finance within 15 days. It is important to remember that 15 days are counted from the end of the month when your turnover exceeded 1.000.000 CZK.

If submitting documents later than the deadline, there is a penalty of 10% of all income received at the period during which the subject should have been a VAT payer. After receiving confirmation from the tax authority, the applicant becomes a taxable entity.

You can also become a VAT payer if your turnover has not exceeded 1,000,000 CZK during 12 months. To do this, you need to collect a package of documents and submit documents for registration of the VAT number to tax authority.