Czech VAT rates and VAT compliance

As a European Union (EU) member state, the Czech Republic follows EU rules on value added tax (VAT) compliance. Czech VAT (DPH) is administered by the Financial Administration of the Czech Republic under the Ministry of Finance.

The standard VAT rate is 21%. The Czech Republic operates a reduced rate and applies zero-rating to certain cross-border supplies under EU rules.

Businesses registered for VAT in the Czech Republic must apply the correct VAT rate to taxable supplies and remit the tax by submitting periodic VAT returns.

Some supplies are exempt from VAT in the Czech Republic. These commonly include:

• Certain financial services and insurance
• Healthcare and medical services
• Education and vocational training
• Certain cultural and welfare services

Exempt supplies do not generate output VAT and generally do not allow recovery of input VAT related exclusively to those activities.

A VAT number is required for businesses carrying out taxable activities in the Czech Republic.

• Domestic businesses register once turnover exceeds the applicable statutory threshold(s).
•  Nonresident businesses making taxable supplies in the Czech Republic generally must register from the first taxable supply where Czech VAT is due.
• For EU cross-border B2C supplies, the EU OSS threshold of €10,000 applies.

Get more information on VAT registration in the Czech Republic.

VAT-registered businesses must file periodic VAT returns (monthly or quarterly as applicable), including:

• Output VAT on sales
• Recoverable input VAT on purchases

Returns are submitted electronically via tax authority systems.
Get more information on VAT returns in the Czech Republic.

VAT is generally payable on the importation of goods into the Czech Republic.
 

• Import VAT is due at customs clearance (with standard EU mechanisms for accounting/recovery via VAT returns where applicable).
• VAT-registered businesses may recover import VAT as input VAT if the goods are used for taxable activities and documentation is maintained.

For cross-border B2C digital services within the EU (telecoms, broadcasting, electronically supplied services), the supplier must charge VAT based on the customer’s member state once the €10,000 EU-wide threshold is exceeded, unless using OSS. (Czech VAT applies where the consumer is in the Czech Republic.)

EU-established businesses may reclaim Czech VAT using the EU VAT refund procedure via their home tax authority (generally by 30 September of the following year). Non-EU businesses may reclaim Czech VAT under the non-EU refund procedure subject to eligibility and documentation requirements.

Exports of goods outside the EU and certain services supplied internationally may be zero-rated, allowing 0% VAT while preserving input VAT recovery rights (subject to documentary conditions).

The Czech Republic operates EU trade reporting requirements:

• Intrastat for intra-EU movements of goods above thresholds
• Customs declarations for imports/exports with non-EU countries

Businesses must issue VAT-compliant invoices that include:

• Supplier and customer details
• VAT number
• Description of goods/services
• VAT rate(s) and amount
   

Time of supply follows standard EU VAT tax point principles (goods vs services; imports at customs). VAT records must be retained in line with Czech recordkeeping requirements. VAT returns/payments are generally due by the 25th of the month following the reporting period.