The e-commerce market in the Czech Republic is growing, providing opportunities for online businesses to tap into a large and growing consumer market. A VAT registration in the Czech Republic can increase credibility and competitiveness for businesses operating in the country, and it can simplify tax collection.
MariaLast Updated on 8 March 2023
The following article answers the most important questions about VAT registration in the Czech Republic.
Who has to register for VAT in the Czech Republic?
If you meet any of the following requirements, you must register for VAT in the Czech Republic:
You are storing goods in the Czech Republic
- Storing goods in an EU-country requires you to register for VAT in that country.
- The limit for a VAT registration for CZ based companies is 2 000 000 CZK in 12 consecutive months
- No matter if the storage happens independently or via a fulfillment provider which stores products in warehouses in Austria, the seller himself is responsible for the VAT registration.
- In some cases, the subsequent filing of VAT returns and tax declarations are also necessary.
You are selling goods to Czech end-consumers, crossing the EU-wide distance selling threshold
- Since July 2021, a VAT registration in EU-Countries to which you are selling is mandatory if distance sales across the EU cross the new €10.000 threshold.
- Distance sales below that threshold don’t require an additional VAT registration.
- The same applies to business registered for OSS, through goods need to be taxed with country-specific VAT rates in that case.
What information is required for a VAT registration in the Czech Republic?
For the registration, the Tax authorities will require specific registration forms, which will be filled out and submitted along with the following documents:
- VAT certificate from your home country (must be issued within the last 6 months)
- Official Company registration certificate (must be issued within the last 6 months)
- Official Company certificate confirming the current company directors (must be issued within the last 6 months)
- Business register extract confirming your companies validity
- Confirmation of bank account details. The name of the company, the address and the bank account number should be mentioned.
- If you are already storing in the Czech Republic, evidence / proof of trade (proof showing the goods were shipped to the Czech Republic) is needed. Please read this article for the creation of the evidence of trade.
Dependent upon company genre:
- Certificate of Incorporation / Article of Association
- Company House Certificate
How long does a VAT registration in the Czech Republic take?
The average processing time of the VAT registration is 30 days after the submission of the documents.
What numbers will I receive when the registration was processed?
When a business gets registered for value-added tax (VAT) in the Czech Republic, it will receive the following number:
- VAT Identification Number (VATIN): The VAT Identification Number, also known as the DIČ or the “dic,” is a unique identifier assigned to the business by the Czech tax authorities. The VATIN must be included on all invoices and VAT returns filed by the business.
How does the format of a Czech VAT registration number look like?
|Name||Daňové identifikační číslo (DIČ)|
|Format||CZ + 8, 9, or 10 digits|
|Example||CZ12345678, CZ123456789, or CZ1234567890|
How high are the tax rates in the Czech Republic?
The standard rate of VAT in the Czech Republic is 21%.
The reduced VAT rates of 15% apply to some goods and services, including basic foodstuffs, water supply, certain types of medical and educational services, and books and newspapers. A reduced VAT rate of 10% applies to pharmaceuticals and baby food.
Can I get registered for OSS instead of getting VAT registered in the Czech Republic?
Yes, you may choose to register for the One-Stop-Shop (OSS) instead of Value Added Tax (VAT) registration in the Czech Republic. However, this is only applicable for the non-EU scheme since the EU based companies have to be OSS registered in their home country.
How do I get registered or find out if I need to register in the Czech Republic?
This is something we can assist you with.
You can book a free consultation with us if you are not sure whether you need a registration in Slovakia. We will evaluate your situation together and give you recommendations.
We can help you obtain a VAT registration if you know that you need it. For more information, please see our internal pricing and contact our Sales team.