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Czech Republic VAT Guide (DPH)

Czech VAT (DPH — daň z přidané hodnoty) applies at 21% standard rate, 12% reduced rate, and 0% for exports. The 2024 reform merged the former 10% and 15% reduced rates into a single 12% rate. Registration is mandatory for businesses with turnover exceeding CZK 2 million in any 12-month period. Reverse charge applies to certain B2B transactions. All amounts in CZK.

Czech VAT is governed by Act No. 235/2004 Coll., on Value Added Tax (zákon o DPH) and is administered by the Financial Administration. The system is fully harmonised with EU VAT directives. For related guidance, see our Corporate Tax Guide →, Personal Tax Guide →, and Investment Income Guide →.

VAT Rates 2026

  • Standard rate (základní sazba): 21% — applies to most goods and services not eligible for reduced rates.
  • Reduced rate (snížená sazba): 12% — applies to food (excluding alcoholic beverages), non-alcoholic beverages, pharmaceutical products, medical devices, public passenger transport, accommodation services, restaurant services (excluding alcohol), books, newspapers, children's car seats, waste collection, cleaning services, and construction work on residential housing. Effective 1 January 2024, the former two reduced rates (10% and 15%) were merged into a single 12% rate as part of the Czech consolidation package.
  • Zero rate (nulová sazba): 0% — applies to exports of goods outside the EU, international transport, and certain intra-Community supplies. Zero-rated supplies still allow input VAT deduction.
  • Exempt without deduction: Financial services (banking, insurance, lending), education, healthcare, social services, postal services, and rental of residential property. These are exempt from VAT but do not allow input VAT deduction.

Registration Threshold

  • Mandatory registration: A person carrying out an economic activity must register as a VAT payer (plátce DPH) when their turnover (obrat) exceeds CZK 2,000,000 in any consecutive 12-month period. Turnover includes taxable supplies of goods and services, excluding VAT itself, in the Czech Republic.
  • Registration deadline: Within 15 days after the end of the month in which the threshold was exceeded. VAT liability starts from the first day of the second month after registration.
  • Voluntary registration: Businesses below the threshold may register voluntarily — this is common for businesses that want to deduct input VAT or trade with EU partners.
  • Non-resident businesses: Foreign businesses making taxable supplies in the Czech Republic must register for Czech VAT regardless of turnover (no threshold applies).

Reverse Charge (Přenesení daňové povinnosti)

  • Domestic reverse charge: The obligation to account for VAT transfers from the supplier to the customer for specific transactions: construction work, supply of goods with installation, transfer of emission allowances, supply of scrap metal and waste, supply of natural gas and electricity, and supply of real estate (where the seller chooses taxation). The supplier issues an invoice without VAT, and the customer accounts for both output and input VAT.
  • EU B2B reverse charge: Cross-border B2B supplies of services and goods within the EU use the reverse charge mechanism — the supplier does not charge Czech VAT, and the customer accounts for VAT in their home country. This ensures the VAT stays in the country of consumption.

Filing and Payment

  • Standard filing: Monthly VAT returns (daňové přiznání k DPH) and a separate recapitulative statement (souhrnné hlášení) for intra-Community supplies. Due by the 25th day of the following month.
  • Quarterly filing: Available for businesses with turnover below CZK 10 million (quarterly turnover threshold). Quarterly returns are due by the 25th day after the end of the quarter.
  • Control statement (kontrolní hlášení): An additional monthly/quarterly filing that lists all taxable transactions in detail. This is submitted electronically and is used by the tax authority for cross-matching of invoices to detect VAT fraud.
  • VAT payment: Payment is due on the same day as the return (25th of the following month). Late payment penalties include interest of approximately 14% per annum (repo rate + 14%).

e-ETR (EET — Electronic Evidence of Sales)

  • The EET (elektronická evidence tržeb) system was introduced in 2016 but was suspended from 2020 and has not been reinstated. As of 2026, there is no mandatory electronic reporting of cash register transactions. The government has indicated that EET will not be reintroduced in its previous form.
  • Businesses should monitor any future legislative developments regarding electronic sales reporting.

VAT Refunds

  • Domestic refunds: Registered VAT payers can claim refunds of input VAT on purchases used for taxable supplies. Refunds are processed through the regular VAT return — excess input VAT over output VAT results in a refund (nadměrný odpočet). The tax authority generally processes refunds within 30 days.
  • EU VAT refunds: Czech businesses can claim VAT refunds from other EU member states through the EU VAT refund portal. The application is submitted electronically to the Czech tax authority, which forwards it to the relevant member state.
  • Non-resident refunds: Businesses established outside the EU may apply for a refund of Czech VAT under the condition of reciprocity. Applications are submitted via the Czech tax authority.