What are the VAT thresholds we should know about?

VAT Registration Thresholds

According to Czech VAT law a company should register for VAT if turnover exceeds 1.000.000,- CZK  in 12 consecutive months. So even if a company did not ask for VAT registration, it becomes automatically liable the month after the turnover limit is exceeded. The company should ask for VAT registration within 15 days following the month when the turnover was exceeded.

Another VAT threshold is triggered when a Czech company buys goods from an EU provider. If the value of the goods is over 326.000,- CZK in a calendar year, then VAT registration is automatically needed.

There is no VAT threshold applied if a company is based outside of the Czech Republic and imports goods with the Czech Republic as the country of entry. VAT registration is automatically needed in this case.

VAT thresholds related to taxable documents:

  • If a bill exceeds 10.000,- CZK including VAT, a normal invoice must be issued.
  • In cases where the amount paid is lower than 10.000,- CZK , a simplified tax document can be provided.
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