became a member state of the European Union (EU) in 2004
; as such, the state had to follow EU’s tax directives
, in accordance with the European Union’s legal framework
. Foreign investors
interested in opening a company
here should know that from the 1st of January 2015
, the value added tax (VAT) legislation
changed, in the sense that the Czech government
introduced a new reduced VAT
, applicable at the rate of 10%
for a certain category of products. Our Czech company formation specialists
can provide you with the main provisions of the VAT legislation
and can offer you assistance for the VAT registration procedures
followed by both local and foreign companies in Czech Republic
VAT regulations in Czech Republic
The amended VAT legislation
came into force from the beginning of 2015, bringing several modifications. Companies
involved in radio and television broadcasting services, as well as those with operations in the field of telecommunications and electronics are now part of the Mini-One-Stop-Shop (MOSS)
, which refers to the fact that such companies are entitled to pay VAT
in the country of the recipient of services.
The VAT rates available in Czech Republic are the following:
• the standard VAT is applied at the rate of 21%;
the reduced VAT
, applicable at the rate of 15%
, is available for a large category of products, such as foodstuffs, water supplies, public transportation, social housing, cultural and sports events, social services, medical and dental services; our company formation specialists in Czech Republic
can offer you a detailed list on this subject.
• from the 1st January 2015, the Czech government imposed a new reduced VAT rate of 10%, available for foodstuffs related to child nutrition, pharmaceutical products or printed books.
Czech VAT registration
The VAT in Czech Republic is administered by the Financni Urad, the local taxation office. The Czech Republic applies the legislation of the non-resident VAT trading, meaning that both companies from EU and outside the EU space can register for VAT in Czech Republic without opening a company on the territory of the country.