VAT calculation
Czech Republic uses three VAT rates for VAT calculation. The basic VAT rate is 21% and there are two reduced rates at 15% and 10%. The higher, 21% VAT rate is most frequently applied.
Is the Czech Republic or Slovakia in your supply chain. We have solution for you.
Are you not VAT registered in EU yet? We can help you make Czech Republic or Slovakia as entering point for your business in European Union.
We help to determine the correct VAT rate and also verify the VAT rate in case of reverse charge – when the company purchases goods from other EU states. On the one hand, we declare VAT payments in the VAT return and, on the other end, we apply for VAT deduction at the same time.
When checking the invoices, we also verify if the seller issued the invoice correctly so you do not pay VAT if not required or at another rate than stated. Due to the requirement to submit VAT control statements, the Czech tax administration has a very powerful means how to check admitted and deductible amounts of VAT.
We minimize the likelihood of tax controls, when preparing VAT reports.
Czech republic charges 10% VAT rate for: Foodstuffs marked as essential for child nutrition; pharmaceutical products; books
Czech charges the 15% VAT rate for: Foodstuffs (excluding essential child nutrition); water supplies; medical equipment for disabled persons; children’s car seats; public transport; newspapers and periodicals; admission to cultural events, shows and amusement parks; social housing; renovation and repair of private houses; cleaning of private households; some agricultural supplies; hotel accommodation; admission to sport events; use of sports facilities; social services; supplies to undertakers and cremation services; medical and dental care; domestic care services.
Having questions about VAT calculation or EU VAT compliance? Contact us.
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