Glossary
VAT (Value Added Tax)
An indirect consumption tax, rates 21 percent and 12 percent.
Value added tax is governed by Act No. 235/2004 Coll. The Czech Republic applies two rates: a standard rate of 21 percent on most goods and services, and a reduced rate of 12 percent on food, medicines, books, public transport and residential construction. Registration for VAT becomes mandatory once your turnover exceeds 2 million CZK over 12 months.