Czech Republic: Domestic Corporate Taxation
Sales Taxes and VAT
The standard rate of VAT in the Czech Republic is 21% (20% in 2012). A reduced rate of 15% is applicable to certain supplies, including construction services, health, public transport services, most food products, books and brochures. A number of items are exempt from VAT; these include insurance and financial services, education, media broadcasting, gambling and postal services.
A business or individual trader must register for VAT if annual sales turnover exceeds CZK1m. Voluntary registration is an option. If annual turnover exceeds CZK10m, then VAT returns must be submitted monthly. If turnover is less than CZK2m, returns are submitted quarterly. For turnover between these two thresholds, the business or individual trader may choose the frequency of VAT reporting.
VAT returns must be submitted within 25 days of the end of the tax period, regardless of liability for VAT. Any VAT due must be paid within the same timeframe.
Excise duty is levied on fuels, tobacco and alcohol. The duty is payable once the goods are removed from the sanctuary of a duty-free warehouse, unless the goods are to be transported to another EU country.