see also :
INTRASTAT in Czechia
VAT rates in Czechia

Is fiscal representative compulsory in Czech Republic ?

Czech Republic is a European Union Member State. If your business is established in another European Country appointing a tax agent or VA representative is not compulsory.

Czech Republic no REQUIRES a tax representative for non EU businesses.

When and how do you have to register for VAT as taxpayer?

Registration in Czech Republic is made in two ways. The first layer is a simple identification for tax purposes : you get your TIN (Tax Indentification Number). It may be for customs needs (your business buys/sells within exempted areas or bonded warehouses, or IntraCommunity purchases. It is just as simple and limited to a Tax number.

A second layer is requested for businesses triggering « right to deduct » and this means the business is performing operations for which it has rights and duties :
– the business has to submit periodical returns to report local operations
– the business has no more access to VAT refund through transnational web portal or 13th Directive, but reports VAT on purchases directly on the form(s) (25401 / VAT books reports through XML : DPHKH1) provided by in Czech Republic like other established companies.

This « trigger » is activated when :
– you deliver goods to individual particulars in Czech Republic and do not / cannot opt for the Distance Sales Threshold relief.
– you move goods from Czech Republic to another State, being third country or Member state.

In most cases your VAT number in Czech Republic will be similar to CZ12345678 / CZ123456789 / CZ1234567890.

What is the threshold for deliveries to particulars individuals in  Czech Republic ?

Distance selling as per art. 34 of VAT Directive (and taxable persons not entitled to deduct input tax and by non-taxable legal persons as per art. 3(2)(a) of the VAT Directive) :CZK 1,140,000 (acq. 326,000 CZK)

Once registered for VAT with right to deduct, which VAT should your business apply in  Czech Republic ?

Standard VAT rate in Czech Republic is 21%, while intermediate rate is  -. On the other hand, reduced rate is 15%, 10%.

Application of Article 37 and 109 to 122 of the VAT Directive in Czech Republic : zero-rated; exemptt

Please note that we open access to a detailed table of VAT rates per goods and services in Czech Republic :
See our section https://becompliant.tax/vat-rates-czechia

What is the scope of a fiscal representative in Czech Republic?

Fiscal representative should always diagnose your operations in Czech Republic and establish clearly and by written :
1- What your transactions are
2- Where your transactions must be reported : territoriality
3- what are your liabilities in the reporting territory : VAT? ECSL? Intrastat?
4- what are the conditions in which you must charge or exempt VAT in your invoices
5- provide you with a reporting agenda

What form for VAT returns and when to submit in Czech Republic ?

Your fiscal representative in Czech Republic will have to submit periodically on your behalf.
The VAT form you are expected to submit in Czech Republic : 25401 / VAT books reports through XML : DPHKH1
In Czech Republic, the periodicity of VAT (locally called Daň z přidané hodnoty) is as follows :

Monthly VAT returns in Czech Republic  are due  By the 25th day of the month following the taxable period, always that Default
Your VAT payment is due :  By 25th day of the month following the taxable period; advance payments are not required.


Quarterly VAT returns in Czech Republic  are due  By the 25th day of the month following the taxable period, always that Turnover (VAT exclusive) in preceding year below CZK 10.000.000

VAT groups

Recent registered businesses
Your VAT payment is due :  By 25th day of the month following the taxable period; advance payments are not required.

Yearly VAT returns in Czech Republic  are due  By the 25th day of the month following the taxable period, your VAT payment is due on the same date.

What are the E/ICSL a fiscal representative submits in Czech Republic ?

The ECSL  you are expected to submit in Czech Republic : 5521 (25th of following month)

Intrastat

Your statistical declarations (Intrastat) in Czech Republic : 10th working day paper / 12th workong day XML form

What are the late registration penalties in Czech Republic ?

Default interest is charged for the late payment of VAT due on a VAT return, beginning with the fifth working day. The interest is calculated as a repo rate declared by the Czech National Bank to be valid on the first day of the respective calendar half-year increased by 14 percentage points (the repo rate represents an interest rate at which the Czech National Bank purchases discounted bills from the Czech commercial banks). The default interest may be applied up to a maximum of five years.

Late filing of VAT returns results in a penalty of 0.05% of VAT due for each day of the delay. The penalty is capped at 5% of the VAT due or at CZK300,000 for each VAT return. The first five working days following the deadline are penalty free.

A penalty is charged at a flat rate of 20% of the additionally assessed VAT if the VAT liability is increased or the deduction of VAT is decreased based on the findings of the tax authorities.

Fines up to CZK500,000 may be imposed for breach of non-monetary obligations such as VAT registration, reporting, recording or other notifications or obligations to provide proof or documentation. Furthermore, the fine for failure to file a Czech VAT return or EC Sales List electronically is now CZK2,000.

Penalties in connection with the obligation to file the VAT ledgers are assessed automatically upon the breach of obligation and the range is from CZK1,000 to CZK500,000 (penalties may be waived if certain conditions are met).

As of December 2016, new penalties were introduced in connection with the new obligation to report sales revenues online. The tax administrator may impose a fine up to CZK500,000 for undermining or complicating the registration of revenues.

 Where to find official information about VAT in Czech Republic

Czech Republic transposed the European Directive into national regulation Law No. 235/2004 Coll. (the VAT Act); last amendments: No. 80/2019 Coll. with effect from 1 April 2019 and 1 January 2020..
The Revenue administration responsible for VAT in Czech Republic is :
Ministry of Finance (www.mfcr.cz)

VAT and INTRASTAT compliance in Czechia

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