VAT Number Verification - Czech Republic and EU Businesses
Validate the ID of any company with a valid VAT registration number in the CZ or EU with our online VAT checker. Verified numbers will return the name and address attached to the registered business at the time and date of verification.
Which businesses pay VAT in the Czech Republic?
Entrepreneurs and businesses must pay VAT in the Czech Republic under two circumstances. The first is if the business’ annual turnover exceeds CZK 2 million. The other is when assets are gained via privatization, merger, or the sale of a company. Either of these instances requires VAT registration. Some might also choose to voluntarily register as a VAT payer, which in some cases can be advantageous.
How do I register as a VAT payer?
To register a VAT number for a business, you must submit a form to the Financial Office. If possible, this form should include proof of economic activity and turnover for the previous 12 months. The Financial authority will then send confirmation of VAT registration if all goes smoothly. Confirmation usually takes no longer than 15 days from submitting the application.
Is it a good idea to register for VAT voluntarily?
Sometimes, it can be advantageous for taxpayers to register as a VAT payer voluntarily. It might be when buying goods or services from a VAT payer more than you sell to them. This enables the VAT payer to claim their VAT back, effectively reducing the cost of your products and services. You might also register for VAT when providing services to entrepreneurs who have a business address in another country. Other reasons include buying products at a standard rate but selling at reduced rates, or for claiming VAT on future purchases of valuable assets.
What tax obligations do VAT payers have?
VAT payers claim and pay VAT, they must keep records, and they have to submit tax and control reports. In the Czech Republic, all VAT invoices must include the words “Faktura - daňový doklad”, along with info regarding the registered VAT payer. This as well includes all VAT evidence and records, which must be archived for 10-year periods.
What are the Czech VAT rates?
Czech VAT rates entail the standard rate (21%), first-reduced (15%), and second-reduced (10%). Any services / products not mentioned in VAT Law (in the reduced VAT section) fall under the standard VAT rate.
Periodic changes to Czech VAT rates
Keep in mind that VAT rates can change periodically with Czech VAT Laws. It’s important to always double-check rates, as changes can complicate matters for VAT payers. Always be sure to check the VAT rate valid for the date of the tax liability in question.
How to confirm Czech VAT rates for products and services
Contact the Institute of Binding Assessment if unsure about the VAT rate to charge for a product or service. For a fee, you’ll get confirmation that the VAT rate is 100% accurate.
What if I forget to register as a VAT payer?
If your income ever exceeds CZK 2 million over a 12-month period, you must register as a VAT payer. If you forget to register, it will still be necessary to pay VAT for the months when your income was over the limit. For example, let’s say you forgot to register for VAT, and you reached the VAT limit in the 9th month of the taxable calendar year. Now, because all your invoices were without VAT, you must pay VAT on months 9 through 12. This is to cover the months when you technically became a VAT payer.
What is Czech Light VAT (VAT-Light)?
Light VAT registration (“identikovana osoba k DPH”) is for businesses who regularly invoice EU clients outside of the Czech Republic. To register for VAT-Light, annual turnover must be below CZK 2 million. Light VAT is officially “the European-Reverse Charge”, stating you will not charge EU-registered business clients VAT. However, Light VAT payers will not have to pay any additional VAT.
When should I register for Czech Light VAT?
You must register for Light VAT if you: 1) have a business license, and 2) invoice EU-registered businesses outside of the Czech Republic. This applies for invoicing any EU entity that is not within the country. There is a 15-day deadline from the date of invoicing to register for Light VAT. Registration must go through the Financial Office. Need help getting registered, all remotely? Let Pexpats know, and we’ll get right on it!