VAT registration and recovery in Czech Republic

Doing business in the Czech Republic often creates VAT obligations for foreign companies. Whether you sell goods, provide services, store inventory locally, or engage in intra-EU transactions, obtaining a Czech VAT number may be mandatory.

At Crowe Czech Republic, we support international businesses throughout the entire VAT registration process and provide ongoing assistance with Czech VAT compliance and VAT recovery.

What is VAT registration in the Czech Republic?

VAT registration in the Czech Republic is the process through which a company obtains a Czech VAT identification number and becomes registered for VAT purposes with the Czech tax authorities.

Foreign businesses may need to register for VAT in the Czech Republic if they:

• import goods into the Czech Republic,
• sell goods to Czech customers,
• store goods in Czech warehouses or fulfilment centers,
• participate in intra-Community transactions,
• exceed statutory VAT registration thresholds,
• provide certain taxable services within the Czech Republic.

Voluntary VAT registration is also possible in specific situations.

Obtaining a Czech VAT number can be complex, especially for foreign entities unfamiliar with local regulations and tax authority requirements.

Our VAT specialists provide comprehensive support, including:

• assessment of VAT registration obligations,
• preparation of registration documentation,
• communication with Czech tax authorities,
• submission of VAT registration applications,
• assistance in obtaining a Czech VAT number,
• ongoing VAT compliance support.

Acting under a power of attorney, we represent your business before the Czech tax authorities, minimizing administrative burdens and ensuring the process runs smoothly.

Foreign companies that incur Czech VAT on business expenses may be entitled to recover that VAT, even if they are not established in the Czech Republic. For companies established in a third country, the refund is governed by the so-called reciprocity principle.

Typical refundable VAT expenses include:

• accommodation and travel costs,
• trade fair and exhibition expenses,
• professional services,
• vehicle-related costs,
• business purchases and operational expenses.

VAT recovery can significantly reduce operating costs for international businesses conducting activities in the Czech Republic.

VAT recovery in Czech Republic – how we can help

Crowe Czech Republic assists companies throughout the VAT refund process.

Our services include:

• verification of VAT recovery eligibility,
• review of invoices and supporting documents,
• preparation and submission of VAT refund applications,
• communication with Czech tax authorities,
• support during additional information requests.

We also assist Czech VAT-registered businesses seeking VAT refunds from other EU Member States.