Q&A · VAT
When do I have to register for VAT?
VAT registration is mandatory once your turnover exceeds 2 million CZK over 12 consecutive calendar months. You can also register voluntarily. Registration is filed electronically and you become a payer from the first day of the second month after the threshold is crossed.
Turnover for this purpose means the value of your taxable supplies with a place of supply in the Czech Republic. Exempt supplies without the right to deduct do not count.
Once you cross the threshold, you must file a registration application by the 15th day of the month following the month in which you crossed it, and you become a VAT payer from the first day of the second following month.
Voluntary registration is common when most of your clients are themselves VAT payers, because they can reclaim the VAT you charge, so it does not raise your price for them while letting you deduct input VAT on your own costs.
As a payer you file VAT returns and control statements, usually monthly at first and possibly quarterly later. Both are due on the 25th day after the period ends, and late control statements carry heavy fixed penalties.