You need to be aware of these 2025 Czech VAT updates if you’re a non-EU established business registered for VAT in the Czech Republic!
In this article, we’ve got the details to help you stay compliant and keep things running smoothly in the land of castles and pivní lázně (beer spa’s).
What are the Czech VAT Updates?
Let’s Czech-out the changes:
It is important to note that although these VAT updates have not been officially adopted yet, it is highly likely that they will be accepted and implemented effective 1 January 2025.
- The need to appoint an agent.
By the end February 2025, non-EU established businesses now must appoint an agent (zmocněnec pro doručování) that has a registered data box. If you already have your own data mailbox, your business will not need to appoint an agent.
The data box (datová schránka) is used by the Czech tax office to ensure secure electronic transmission of letters and other notifications. Without a data box going forward, the taxpayer will not be able to receive VAT-related communications from the tax office which could lead to multiple further implications.
Entities that qualify as acceptable representatives/agents include local tax advisors or companies registered in Czech that have their legally required data box set-up. Hint hint – VAT IT Compliance is ready and able to be appointed as your VAT agent to make sure you meet the Czech VAT requirements!
Failure to appoint an agent or have the required data box will result in a penalty of approximately 1 000 CZK per day of non-compliance (starting from 1 March 2025 onwards).
- The need to notify the tax office of your businesses email address
In addition to the above, non-EU businesses need to submit a notification of change in registration details to inform the tax office of an email address that can be used for the Czech tax office to communicate with electronically.
This obligation is also required to be completed by the end of February 2025 and non-compliance can lead to penalties of 500 000 CZK.
Not registered for Czech VAT?
If you are a non-EU established business, it is important to remember that there is no registration threshold, and you need to apply for a VAT registration prior to making taxable supplies in the country.
Taxable supplies include, amongst others, any intra-community supplies, exports, imports, local sales in or distance sales made directly to individual customers in the Czech Republic.
If you failed to register before, the Czech tax office allows backdated registrations to regularize your position at the tax office, but penalties and interest may be applicable.
Wrapping up the Czech VAT adventure.
Don’t let these VAT updates stress you out – we can help you tick all the boxes. Contact us now to receive expert guidance and easy compliance.
You can also take a look at our overview guide of what to expect in the Czech Republic in our country guide!
