What is a VAT rate?

Put simply, the VAT rate is a percentage charge levied by the government on the value of goods and services.

How many rates are there in the Czech Republic?

In the Czech Republic there are three VAT rates (taxes):

  1. the basic VAT rate is 21%
  2. reduced rates of 15%
  3. reduced rates of 10%.

Most often the 21% VAT is being applied.

The 10% reduced rate is charged for:

  • Foodstuffs marked as essential for child nutrition,
  • pharmaceutical products,
  • books.

The 15% VAT rate is charged for:

  • Foodstuffs (excluding essential child nutrition);
  • water supplies;
  • medical equipment for disabled persons;
  • children’s car seats;
  • public transport;
  • newspapers and periodicals;
  • admission to cultural events, shows and amusement parks;
  • social housing;
  • renovation and repair of private houses;
  • cleaning of private households;
  • some agricultural supplies;
  • hotel accommodation;
  • admission to sport events;
  • use of sports facilities; social services;
  • supplies to undertakers and cremation services;
  • medical and dental care;
  • domestic care services.

We can help you with all three VAT rates for your company. Contact us.

Details about VAT rules and rates are set out under the Czech VAT law. The specific law is number 235/2004 Col. The basic law is updated and amended every year.

Back to all articles