VAT Tax in The Czech Republic 2025 – guide

VAT Tax in The Czech Republic 2025 – guide
Marek Cieślak

Marek Cieślak

CEO CGO Finance

VAT tax in the Czech Republic is a key component of the Czech tax system. Entrepreneurs who plan to do business in this country should familiarize themselves with the necessary information on VAT. They can do so right now! We discuss below what registration looks like, what are the rates and the deadlines for filing returns.

Table of Contents

VAT Tax in the Czech Republic – What Is It?

VAT, or Value Added Tax is known as DPH in the Czech Republic. It applies to most goods and services sold in the country. As in other EU countries, VAT is charged at every stage of the supply chain, and consumer is the final payer.

VAT Tax in The Czech Republic

VAT Tax in the Czech Republic – Registration

As a member of the EU, the Czech Republic requires VAT registration in typical situations, such as:

  • Importing goods to the Czech Republic,
  • shipping (sale) or acquisition (purchase) of goods from other EU countries.
  • operating consignment warehouses in the Czech Republic,
  • organization of live events (with paid admission),
  • exceeding the threshold of 10 000 EUR from the sale of goods or services to EU consumers.

The VAT registration process in the Czech Republic includes:

  1. submitting an application to the Czech Tax Office,
  2. providing details about the company, e.g. the type of business and your expected turnover.
  3. receiving a unique VAT number (DIČ).

To register as a Czech VAT taxpayer, it is necessary to submit an online application. It is in the Czech language. The next step is to sign a paper copy confirming the electronic submission of the application.

VAT Tax in The Czech Republic

VAT Tax in the Czech Republic – Rates

There are currently two main VAT rates in the Czech Republic:

  • basic tax rate – 21%,
  • reduced tax rate of – 12%.

All legal prerequisites for applying individual VAT rates are specified in regulations. You can find more information here.

The standard 21% rate applies to most of the goods and services. There are some exceptions where the reduced VAT rate is specified directly by the Act.

VAT rateValueExamples of goods and services
Standard21%all goods and services not subject to a reduced VAT rate
Reduced12%– take-away food – medical equipment for the disabled – car seats for children – admission to cultural events, performances and amusement parks – social housing – renovation and repair of private housing – hotel accommodation – access to sports events – medical and dental care

Some goods and services may be completely exempt from VAT. This concerns e.g. medical or educational services, insurance, television and radio broadcasts.

VAT Declarations in the Czech Republic

Companies registered for VAT in the Czech Republic must submit VAT returns regularly. Below we present the key information.

  • VAT returns in the Czech Republic are submitted monthly or quarterly. It depends on the amount of turnover.
  • Declarations are sent electronically through the tax administration system.
  • The declarations should include:
    • value of sales and purchases subject to VAT,
    • the amount of VAT due and deducted,
    • amount to be paid or refunded.
Type of actionDeadline
Submission of VAT returnsby the 25th day of the following month
Payment of VATby the 25th day of the following month

What are the VAT rates in other European countries? You will find out in this article

Consequences of Failing to Register for VAT in the Czech Republic

Failure to comply with VAT obligations in the Czech Republic can lead to:

  • financial penalties, calculated depending on tax arrears,
  • suspension of business activities,
  • additional tax audits.
VAT Tax in The Czech Republic

Tips for Companies Operating in the Czech Republic

  • Regularly check for changes in Czech tax law.
  • Monitor your turnover to avoid unexpected registration requirements.
  • Use the services of tax advisors to properly settle VAT and minimize the risk of errors.

VAT Tax in the Czech Republic – Summary

VAT tax in the Czech Republic is one of the basic elements of doing business in this country. Knowledge of current rates, registration rules and deadlines for filing declarations allows you to avoid problems with tax administration. It will also optimize your company’s costs.

Contact us for professional assistance with VAT registration in the Czech Republic. Our team of experts will ensure compliance and peace of mind in running your business.

FAQ – VAT Tax in the Czech Republic

What is VAT Tax in the Czech Republic?

This is a value-added tax that covers most goods and services in the Czech Republic.

Who needs to register for VAT in the Czech Republic?

Companies that achieve an annual turnover higher than 10 000 EUR.

How to register for VAT in the Czech Republic?

Registration is made at the local tax office.

What are the VAT rates in the Czech Republic?

Standard (21%) and reduced (12%).

Can I voluntarily register for VAT in the Czech Republic?

Yes, voluntary registration is possible for companies with lower turnover.

How often do I have to file VAT returns in the Czech Republic?

VAT declarations are filed monthly or quarterly, depending on your turnover.

What are the consequences of not registering for VAT?

Financial penalties, tax audits and loss of the possibility to deduct VAT.

Can I reclaim VAT for business purchases in the Czech Republic?

Yes, provided that the purchase is related to activities subject to VAT.

Where can I find more information about VAT Tax in the Czech Republic?

On the website of the Czech tax administration or with tax advisors.

Do VAT rates in the Czech Republic change frequently?

Changes are rare, but staying updated on tax regulations is recommended.

Featured expert

Marek Cieślak

CEO CGO Finance