Czech Republic Increases The VAT Registration Threshold

February 1, 2023

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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Agustín Trevisiol
Tax Researcher

Agustin is an International Tax Lawyer and specialist in cross-border digital transactions. He has worked with VAT, GST, and DST in over 90 countries on all five continents. Over those jurisdictions, he has been handling registration thresholds and procedures, invoicing requirements, compliance, return submission, and tax remittance. With that respect, he has been providing assistance and advisory to many leading firms in the digital economy, especially in online education, video games, and fintech.