Czech Republic Increases The VAT Registration Threshold

Czech Republic Increases The VAT Registration Threshold

The VAT registration threshold for resident businesses in the Czech Republic has been increased from CZK 1,000,000 (~42,000 EUR) to CZK 2,000,000 (~84,000 EUR) beginning January 1, 2023.

This new limit will be calculated taking into account:

  • the period of 12 consecutive calendar months before December 2022, or
  • the period before the month of December 2022, in which the business was a taxable person, if it became a taxable person after December 1, 2021

A tax resident business in the Czech Republic (not a member of a VAT group) may apply to deregister if its turnover does not exceed CZK 2,000,000. Deregistration will take effect on the day following the notification of the decision to cancel the registration.

If a company had to submit a registration application as a result of the previous threshold being exceeded and the application is still in progress, the company has the option of withdrawing the application.

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