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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:
Czech Republic VAT rates | ||
Rate | Type | Which goods or services |
21% | Standard | All other taxable goods and services |
15% | Reduced | Foodstuffs (excluding essential child nutrition and gluten-free food); non-alcoholic beverages; take away food; water supplies; medical equipment for disabled persons; children's car seats; some domestic passenger transport; admission to cultural events, shows and amusement parks; writers and composers; social housing; renovation and repair of private dwellings; cleaning of private households; some agricultural supplies; hotel accommodation; admission to sporting events; use of sporting facilities; social services; supplies to undertaker and cremation services; medical and dental care; domestic care services; firewood; some pharmaceuticals; some domestic waste collection and street cleaning; treatment of waste and waste water; food provided in restaurants and cafes; cut flowers and plants for decorative use; writers, composers and food production |
10% | Reduced | Foodstuffs (selected baby food and gluten-free food); newspapers and periodicals; some pharmaceutical products; some books (including e-books) |
0% | Zero | Intra-community and international transport |
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.
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