All EU member states have a fixed format for their VAT numbers. In Czech Republic, it includes 8, 9, or 10 numbers and the prefix CZ (e.g., CZ12345678, CZ123456789, or CZ1234567890).
The standard VAT rate in the Czech Republic is 21%, with reduced rates of 15% and 10% on certain goods and services. Some services are exempt from Czech VAT, such as intra-community and international transport.
All businesses with the Czech VAT number must submit periodic VAT reports and payments.
Czech Control Statements are supplementary filings to the regular monthly VAT return by the 25th of the following month.
Failure to submit the filing will result in a fine of CZK 1,000 to 500,000.
According to §29 of the Czech VAT Act, invoices must contain at least the following information:
Czech VAT invoices must be issued within fifteen days following the tax point. Invoices must be stored for ten years.
The Czech Republic, like all EU member states, now permits the use of electronic invoices under certain conditions. The Czech tax authorities must be informed of the method and location of the invoice storage.
The Czech Republic has been gradually introducing mandatory real-time invoice reporting and now, it is mandatory for some taxpayers, only for transactions paid in cash. The last wave of the adoption was postponed to January 1, 2021.
Governmental body responsible for e-invoicing in Czech Republic:
What does the reporting process in Czech Republic look like?
Who is affected by this obligation?
Electronic invoices must be reported in real-time to Czech Tax Authorities for all cash transactions made between taxable persons established in the Czech Republic and Czech customers.
This obligation is affecting only cash transactions made between Czech customers and taxable persons established in the Czech Republic. E-invoices must be issued in a prescribed format XML, confirmed by Czech Tax Authorities as a guarantee of authenticity.
All invoices must be issued within 48 hours from registered sale in order to be compliant with Czech Tax Law. Otherwise, a seller will receive a penalty for the late invoice issuance.
Date updated [May 12, 2021]
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