Import VAT in the Czech Republic

Would you like to start importing goods into the Czech Republic or the EU and start selling them? VAT on the imported goods must be declared.

The fundamental first step, which we have been helping our clients perform, is to register for VAT and then you can proceed to import the first goods without any worries. You can ship your goods using the services of a customs agent.

The customs agent provides your VAT number to the Czech Customs Union, smoothing the process of getting your goods to the final destination. The customs agent helps declare the goods and will communicate with the Customs Union to get a decision clearing the free circulation of your goods. During this process, the Customs Union issues several documents:

  • An import document
  • The total value of the fee

Czech VAT law regards the Import document issued by the Czech Customs Union as the taxable document. ‘Total value of the fee’ is the VAT tax base used to report in the VAT return. Because you are already VAT registered, you can use so-called Postponed Accounting via the VAT return. VAT is being paid and deducted at the same time via your periodic VAT return.

There is no deferred payment applicable for VAT purposes in the Czech Republic.

Do you want to ship your goods to Slovenia, Italy, the Netherlands, Germany, but declare them solely in the Czech Republic?

This can be done easily. In the documentation connected with the delivery you must state that the country where the import shall be declared is Czech. The shipping company takes the consignment from the ship. They forward it by air or road to the Czech Republic as the final destination.  Therefore if you declare as the final destination Slovenia, Italy, the Netherlands, Germany, for example,  the possibility of VAT registration arises in these countries.

What you need to be careful about

The databases of the Czech Tax Administration and Czech Customs Union are connected. So the Tax Administration can check if and when imports were carried out. This kind of checking is not done in all cases, but only if there are doubts connected to VAT reporting. Therefore amounts should be reported correctly and company must declare the input VAT in the correct VAT report.

We can help you with the process of registering VAT. Contact us.

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