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Czech Republic: Domestic Corporate Taxation

Sales Taxes and VAT

This page was last updated on 6 September 2019.

The standard rate of VAT in the Czech Republic has been 21% since 2013.

There are two reduced VAT rates. A rate of 15% is applicable to certain supplies, including building, health, public transport services, most food products, livestock, water, domestic fuel, books, newspapers, household services and cultural and sporting events. The further reduced rate of 10% applies to medicines, pharmaceuticals, electronic books and baby food.

A number of supplies are exempt from VAT. These include the export of goods to other EU countries; in this case, any VAT that has been input may be recovered. Exempt supplies where there is no right to recover input VAT include education, financial services, healthcare, insurance services and long-term property rentals.

A business or individual trader must register for VAT if annual sales turnover exceeds CZK1m. Voluntary registration is an option. If annual turnover is less than CZK2m, returns must be submitted quarterly; if it exceeds CZK10m, VAT returns must be submitted monthly. For turnover between these two thresholds, entities may choose how often they submit VAT returns.

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 a duty-free warehouse, unless the goods are to be transported to another EU country.

 

 

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