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VAT return

Summary of most important changes in VAT-code, effective from JAN 1st, 2010:

  • increase of VAT rates: reduced rate from 9% to 10%; basic rate from 19% to 20%
  • changes to the place of supply rules for services (place of supply is based on where the customer is located or the service is consumed)
  • an additional obligation to make an Electronic Sales Listing report of cross-border services
  • changes to the method by which applications for 8th Directive Refunds are made
  • changes to the place of supply rules for electronically supplied services


Liability limits to VAT Registration in Czech Republic:

Domestic corporate body / individual: Turnover higher than 1,000,000 CZK in successive 12 months
Foreign body, VAT payer delivered goods to Czech Republic to non registered customers
 – limit 1,140,000 CZK in calendar year (mail-order trade)
Tax return delivery date – 25th day of next month 

VAT rates in Czech Republic, year 2009: reduced rate = 9%, basic rate = 19%
Rate 9%: basic foodstuffs, newspapers, medical and pharmaceutical products
Rate 19%: all other goods and services
Zero rate: export of goods and related services, international transport