VAT guide for Czech Republic

Discover everything you need to know about VAT rates and compliance in the Czech Republic. Get detailed guidelines on Czech VAT, returns, and more.

VAT Guide for Czechia

Welcome to our comprehensive guide on VAT (Value Added Tax) for Czechia (Czech Republic), designed especially for e-commerce sellers within Europe considering expanding their reach to the Czech market. A solid understanding of Czechia’s VAT system is crucial for smooth business operations and compliance with local as well as EU VAT regulations. This guide provides you with essential information on VAT rates applicable to various goods and services, the VAT registration process, filing requirements, and other important considerations.

Czech VAT Rates in 2024

Czechia sets its VAT rates within the parameters established by the EU, ensuring that they are not lower than the EU’s minimum standard rate of 15%. As a VAT-registered entity in Czechia, you must apply the correct VAT rates to your sales transactions and remit the collected tax to the Czech tax authorities.

Here are the current VAT rates in Czechia:

RateTypeGoods/Services Covered
21%Standard VAT rateApplies to most goods and services not eligible for reduced rates.
15%Reduced VAT rateIncludes some food products, water supplies, certain pharmaceutical products, books, and some residential property services, among others.
10%Second reduced rateCertain goods such as baby food, medicines, books, and special medical equipment.
0%Zero rateExported goods, intra-community supply of goods, and certain services related to international transport.


VAT Compliance in Czech Republic

Ensuring adherence to VAT laws and regulations is a fundamental part of doing business in Czechia. It involves obtaining a Czech VAT number, timely VAT filing, and payment.

How to Register for VAT in Czechia

Foreign businesses without a place of business in Czechia but conducting taxable activities may need to register for VAT. The registration steps are as follows:

  1. Application Submission: You must complete the necessary registration forms. These can typically be obtained from the Czech tax authority’s official website.
  2. Document Provision: You will need to provide documentation such as a VAT certificate (to prove your business is registered in the EU), a license to do economic activities and an extract from the national trade register. All these documents should be looked over by a translator to prevent any errors.

After your application is processed, you will receive a Czech VAT number, which is essential for all VAT-related transactions within the country.

Czech VAT Filings

Businesses with a Czech VAT number are required to submit periodic VAT returns. The frequency and deadlines can vary based on your business size and the specifics of your activities.

  • Electronic Filing: VAT returns should be filed electronically through the Czech tax authority’s electronic portal.
  • Submission and Payment: It is imperative to submit VAT filings and payments according to the specified schedule to avoid penalties.

For more detailed filing instructions or updates on VAT return procedures, consulting the Czech tax authorities or a knowledgeable tax professional who understands Czech VAT law is advisable.


VAT-Related Fines in Czechia

Adhering to VAT regulations is critical to avoid the imposition of fines and penalties. The following table outlines the types of infractions and associated fines in Czechia:

Infraction TypePenalty DescriptionFine / Penalty Range
Late FilingFiling a VAT return after the deadline.Penalties are calculated as a percentage of the tax due, with a maximum cap.
Late PaymentPayment made after the VAT due date.Interest is charged on the late payment at the statutory rate.
Inaccurate FilingIncorrect or incomplete VAT filing.Fines can be levied as a percentage of any undeclared tax.
Failure to RegisterNot registering for VAT within the required timeframe.Can result in backdated VAT liability plus interest and penalties.
Record Keeping ViolationsPoor maintenance of VAT invoices and records.Financial penalties vary based on the nature and extent of the non-compliance.

It is important to note that fines are subject to change and may differ based on the specifics of each case. Consulting current legislation or a tax advisor is the best way to obtain the most accurate and up-to-date information.


VAT Registration Thresholds in Czechia

Understanding when you are obligated to register for VAT in Czechia is imperative:

  • For local Czech businesses: VAT registration is mandatory when turnover exceeds 1,000,000 CZK (approximately 40,000 EUR) in any consecutive 12-month period.
  • For EU-based businesses: There is no threshold; VAT registration is required from the first provision of taxable goods or services to consumers in Czechia.
  • For non-EU-based businesses: VAT registration is generally required from the first sale, with some exceptions depending on the nature of the goods or services provided.
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Do you have inventory stored abroad because you sell through Amazon FBA, for example, or use a European fulfillment center? Then you need an European VAT registration in that country! Save yourself the paperwork and let us apply for your VAT registration.

Where can I use the VAT registration?

You can use the VAT number for any business purpose. For example, when selling through Amazon,, Shopify or another platform. The number is also valid if you are going to do business locally that requires a European VAT number.

If you have a VAT registration abroad, you will also have to file VAT returns there. How often and when to do so, depends on the country. It can be monthly, or quarterly.

We understand that you don’t feel like doing all the VAT administration. So leave it to us: link your sales accounts to Staxcloud, so we can always accurately file your European VAT return. Then you won’t spend any more time on VAT returns.

July 1, 2021, the One Stop Shop went into effect, also known as the One-Stop Shop system. Do you sell more than €10,000.- across borders every year? Through this new regulation, you declare your VAT of all the countries in which you do business at once. If you have all your stock in your country of residence, you no longer need a VAT number in those other countries. In the One Stop Shop declaration, you declare every cross-border sale within the EU.

That involves quite a bit of math. Especially if you sell through multiple platforms! We’ve come up with something on that: you can link all your sales channels (Amazon,, Shopify and more) to Staxcloud. This way you always have all your VAT data at hand, and within 5 minutes you have your One Stop Shop declaration arranged. Staxcloud does the calculations, and our Staxxers handle the declaration further. Handy right?

A tariff is a tax on imported goods, and the tariff number, also called a tariff code or HS code, gives customs officials more information about what kind of item is being imported. The standard code is a six-digit number, but some countries have codes of 8 or 10 digits.

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Dealing with VAT

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Vat consult for e-commerce

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Janine Bouwmeester

VAT consultant