Failure to apply the correct VAT rates on Czech invoices will leave companies exposed to meeting the difference, as well as penalties and late interest. The VAT rates are set by the Czech government, but follow the general rules for the use of the standard and reduced VAT rates.
The current rates are:
After obtaining a Czech VAT number, foreign entities are required to follow the local VAT accounting and tax rates. Requirements include:
The tax point (time of supply) rules in Czech Republic determine when the VAT is due. It is then payable to the tax authorities 15 days after the VAT reporting period end (monthly or quarterly).
For most goods, it is the time of delivery or passage of title. For services, it is the completion of the service.
This guide covers the essential steps ecommerce sellers need to take now that the UK has left the EU Customs Union and VAT regime to keep their cross-border sales going, avoid extra tax costs and frustrated customers.
Read the report to learn about key industry trends, emerging issues, and challenges faced by cross-border sellers and shippers.
Manage international tax with cross-border solutions for VAT, HS code classification, trade restrictions, and more.