VAT compliance Czech Republic

VAT Compliance in the Czech Republic 2026: Key obligations

VAT compliance in the Czech Republic is an ongoing process covering invoicing, record-keeping, and tracking changes in Czech VAT law. Whether you are a local entity or a foreign company selling into the country, dealing with VAT in the Czech Republic is a monthly necessity.

How VAT works in the Czech Republic (Rates 2026)

VAT is the main indirect tax in the country. To ensure proper VAT compliance, you must apply the correct rates:

VAT Rate Type	Rate Value	Applicable to
Standard Rate	21%	Most goods and services
Reduced Rate	12%	Food, pharmaceuticals, construction (social housing)
Zero Rate	0% (Exempt)	Books, intra-EU supplies, export

The rules are primarily governed by the Czech VAT Act (No. 235/2004 Coll.) and relevant EU directives.

Obligations of VAT-Registered Businesses

Once you obtain a VAT registration, several recurring obligations arise:

Invoicing: Issuing tax documents within 15 days, ensuring correct content and rates (21% or 12%).
Bookkeeping: Maintaining detailed records for domestic, intra-EU, and non-EU transactions.
Filing VAT Returns: Mandatory electronic filing (monthly or quarterly).
Control Statement: A specific Czech reporting requirement to match invoices between suppliers and customers.
EC Sales List: Required for intra-Community supplies.
Archiving: Invoices must be stored for at least 10 years.

VAT Compliance for Foreign Companies

Non-established taxable persons often face an immediate VAT registration in the Czech Republic as there is no local turnover threshold for foreign entities.

Common triggers for registration:

Warehousing: Using a Czech fulfillment centre (e.g., Amazon FBA).
B2C Sales: Selling to Czech customers without using the OSS scheme.
Installation & Events: Providing goods with installation or organizing paid conferences in the Czech Republic.
Import into the EU: Central location makes CZ an attractive entry point for customs optimization.

FAQ: Common Questions about VAT in the Czech Republic

Does a foreign company need a VAT number without a local branch?

Yes, if you carry out taxable supplies (warehouse, B2C sales, events) where reverse-charge doesn't apply. There is usually no minimum threshold for foreigners.

How long do I need to keep my VAT records?

Invoices and documentation must be kept for 10 years from the end of the tax period.

What are the penalties for non-compliance?

Late filing or incorrect control statements can lead to fines up to CZK 50,000 plus interest on late payments.

Do you need a tax advisor?

Whether you are a local company or a foreign business, we handle your VAT compliance in the Czech Republic, including registration, returns, and tax advisory in English and German.

Fast and clear communication
Transparent pricing agreed in advance
Full representation before the tax authorities

Author: Ing. Ondřej Antoš, LL.M., member of the Czech Chamber of Tax Advisers.