Format, Application, Threshold limitations – VAT number Czech Republic

The Czech Republic with its population of more than 10 Million people provides a strong economic power in the Central European region. More and more online sellers decide to increase their activity in Eastern Europe, especially in Poland and in the Czech Republic. In this article, you will find information about the format of a VAT number, how to obtain one and when it becomes necessary.

What is the format of the Czech VAT Number?

The VAT number in the Czech Republic is called “daňové identifikační číslo” or short “DIČ”. Its first two letters are the classic country code “CZ” which is followed by either eight, nine or ten digits. In some cases, there might be letters added.

Format of the Czech VAT Number:
Name	daňové identifikační číslo
Country Code	CZ
Format	CZ + 123456789
Example	CZ123456789

Reasons to register for a VAT Number in Czechia

If your read or pass the annual delivery threshold the limit of 1,140,000 CZK (ca. 43,700 EUR), you must register for VAT in Czechia. It also requires a VAT number if you intend to store goods in the country.

Threshold Limits

When selling to Czechia and passing the annual delivery threshold of 1,140,000 CZK (43,700 EUR), a VAT registration becomes mandatory there. If you do not reach the limit with your annual sales, you only pay VAT in the country of import.

This means when selling from an EU country to Czechia and reaching this value with import within one calendar year, the place of VAT liability changes and you need to apply for a VAT number in the Czech Republic.

Apply in time for your VAT ID. The application and verification process may take a while. To avoid trouble with the Czech fiscal system or to fall behind your business schedule prepare early for an application.

Country	Threshold Limit
Czech Republic	1,140,000 CZK (ca. 43,700 EUR)

Note: As from July 1, 2021, the European Union has changed the regulations of threshold limits within the EU. There will be a threshold limit of 10,000 EUR for the whole of Europe. As a result, this means that sellers will need to register for VAT in all EU countries they are selling to once having reached the 10k limit. To reach this limit, ALL intra-European sales are taken into account.

Storing goods in the Czech Republic

As a foreign trader who intends to store goods in the Czech Republic, registration for VAT becomes mandatory. There is no tax on shipments to the Czech Republic as being a trader from abroad. Inter-community shipments can be proven by pro-forma invoices. 

VAT Number – How to apply in the Czech Republic

To apply and register for VAT, you need to fill an online application. This form only exists in the Czech language. You can find it here.

Once you filled it (with the help of a translator) you send a signed hard copy and additional documents to the following address:

Financni urad pro hlavni mesto Prahu
Stepanska 619/28
111 21 PRAHA 1
The Czech Republic

Additional documents required:

• VAT certificate to prove the business is registered for VAT elsewhere in the EU
• Licence to perform economic activities
• An extract from the company’s national trade register

Important: The additional documents mentioned above must be translated into the Czech language by a sworn Czech translator.

The execution and validation of your VAT application may take several weeks.

If you want to automate your VAT in the Czech Republic and if you want us to take care of your VAT registrations, returns, correspondence with the authorities and much more, book a free consultation with us!

When and how often are VAT returns due?

The standard period for filing VAT returns in the Czech Republic is monthly. Businesses with a turnover of less than 10,000,000 CZK (ca. 388,000 EUR) of the precedent year can decide to file returns quarterly as well. For these quarterly returns, the company must be registered for a period of minimum three years in the Czech Republic.

The deadline for Czech VAT returns is until the 25^th day of the next month following the tax return period.

• Example monthly returns: until February 25 for January
• Example quarterly return: until April 25 for the first quarter

How to find a Czech VAT Number online

It is simple to find a VAT number online. The European Commission has developed a special tool called VIES. This tool allows you to find VAT numbers all over the European Union. VIES is handy if you want to check a VAT Nr. of a business you want to work with. It gives proof whether the business has a VAT identification number and is accordingly legally registered and reputed. A company with no legal VAT ID might lead to problems for your own business.

To use the tool, simply follow the link VIES VAT number validation and type in the VAT ID you are looking for.

It might occur that the VAT number you are looking for is not available. This may have different reasons.

• The VAT number does not exist
• The activation of the number is still in process
• The registration is still in process

To activate and upload your personal VAT number to the database may take some time in addition to the processing time of the Czech authorities. Do not worry if your number is not displayed immediately as soon as you received your VAT ID from the Czech tax office.

Summary

Passing the threshold limit of 1,140,000 CZK annually or intending to store goods in the Czech Republic requires a VAT ID. The communication only works in Czech language; therefore, you need a sworn translator for translating your documents and filling in the application form. Apply early, to receive your VAT ID in time.

FAQs