Czech Light VAT (in full words value-added tax) - this term is used in the Czech Republic for an “identified person” aka identifikovaná osoba or also called hyb. So let’s take a look at the 5 most common situations when you appear to be a light VAT for the Czech Republic.
- a taxable person who is not a taxpayer or a legal entity who is not taxable who in the Czech Republic purchases goods from another EU country and these goods are subjected to VAT.
- a taxable person with a registered establishment in the Czech Republic (CR) who is not a taxpayer and accepts taxable supply (in the CR) from a person with a residence outside of the Czech Republic. An example of this can be a service, goods supply with installation, etc.
- a taxable person with a registered establishment in the Czech Republic who is not a taxpayer and provides a service with a taxable supply outside of the CR (with the exemption of the services that are exempted from VAT).
- a taxable person with a registered establishment in the Czech Republic who is not a taxpayer and offers their services under a special one-site regulatory scheme.
- a taxable person who is not a taxpayer or a legal entity who is not taxable and who purchases goods from another EU country.
- a person who voluntarily registers for the VAT in advance, usually for the reasons mentioned above.
Examples of Light VAT Registrations
1. As Czech registered busines provide or get IT, Graphic design, or consultancy service to/from the Business registered in the EU but not in the Czech Republic
2. As Czech registered business provide services related to platforms such as YouTube, Airbnb, Uber or Booking.com, etc.
3. Pay to promote your business with Facebook or Google ads
Obligations of an identified person/light VAT
You will need to register for VAT at the Tax Office within 15 days of becoming an identified person. Unlike with the VAT obliged taxpayers, you do not have to apply by electronic form. The identified person has to keep a record of all the expenses regarding VAT.
Light VAT doesn't have a turnover condition of 2 million CZK for the previous 12 months like Czech National VAT. You must register for Light VAT as soon as you invoice a company registered in the EU, even if your turnover is under 2 million CZK for the last 12 months. Please note that the penalty for not registering on time or by the deadline can be up to 500,000 CZK.
Tax period and tax return
The tax period for VAT is one month. The identified person only has to present a tax return, if there was an obligation to grant VAT during that tax period, and can do so up until 25 days from the end of the tax period.
If an identified person provided service in one of the EU countries, they will have to present a summary report, but do not have to do a tax return for that tax period.
After reaching 2 million CZK and registering for Full VAT, Light VAT registration will be canceled. But all the rules and regulations will be the same.
Not sure if you are registered for Light VAT or Czech national VAT? Verify it with our VAT checker tool!
