VAT Evaluation Form

This is not the right form for foreign businesses / Amazon sellers. This form is only for Czech Trade Licenses and SROs.

CLIENTS INSIDE CZECH REPUBLIC

If you are reaching or have crossed the 2M/2.54M CZK FROM CZECH CLIENTS, you have the OBLIGATION to register for Full VAT

If you DID NOT YET reach the 2M/2.54M CZK FROM CZECH CLIENTS, you may VOLUNTARILY register for Full VAT, but count on it that the Tax Office most likely rejects the application and instructs to reghister again when you are over the limit.

If you DID NOT YET reach the 2M/2.54M CZK FROM CZECH CLIENTS or  had mostly EXPENSES WITH VAT and (almost) no sales, you may VOLUNTARILY register for Full VAT, but there is a >90% chance that the Tax Office will reject the application.

If you have a Trade License  / other free profession in par. 7 and Rental Income, the total of the two counts towards the 2M CZK Full VAT limit.

EXPENSES FOR YOUR BUSINESS IN CZECH REPUBLIC

Only if you are Full-VAT registered, you can claim back this VAT. If you are "only" VAT-Light registered, you can NOT claim back this VAT.

CLIENT INSIDE THE EUROPEAN UNION, BUT NOT IN CZ

From the first B2B invoice to EU, no matter how small, you must have a VAT-Light registration. If this is not the case, we need to fix this asap and file backwards VAT RETURNS from that first invoice.

Normally, for B2B to EU, from the first invoice on, no matter how small, you must have a VAT-Light registration, and the buyer as well. If the buyer is VAT-excempt for one reason of the other, than this must be indicated in the VAT Return if you are already VAT-registered.

Services to private customers in the EU or outside the EU are treated as if they were provided to clients in CZ - therefore, sales to them count towards the 2M/2.54M limit for Full VAT, but strangly enough, are no reason t oregister for VAT-light

Secondhand cars, Alcohol, Tobacco and other Comodities are subject to special VAT regulations. Also, registrations for VAT will be examined by the tax office on case-to-case basis.

Providing B2B Services (remote work) requires VAT-Light, invoicing with 0% VAT and filing VAT Returns for the months you send invoices

Selling Goods with local installation requires VAT-light, invoicing with 0% VAT, filing VAT Returns for each month you send an invoice. Condition: you do not have an office / workshop in the other EU country.

Provinding services and/or goods from a permanent establishment in another country, will make you subject to Income Tax and VAT there.

With Distance Selling of Goods, the VAT of the country of destination should be charged, when sales exceed 10.000 EUR.&#13;&#10;&#13;&#10;Distance selling no longer requires separate VAT numbers in each country you are selling due to the OSS system. In principle, 1 (CZ) VAT number is enough. OSS filing is a speciality.

It is possible that small businesses in another EU country do not have the obligation to register for VAT, and therefore their invoice does not have any VAT component, not even 0%. As a rule of thumb, IF YOU are VAT-registered, this purchase should be reported, if YOU are not VAT-registered, no reporting either.

0% VAT Reversed Charges: so, you have to deal with the 21% VAT in Czech Republic, which is only claimable with Full VAT. With VAT-Light you end up declaring and sending the 21% VAT to the Tax Office without possibilty for a refund.

Foreign VAT: not so easy to claim back, the transaction should have been with 0% VAT, in case you were Full-VAT or VAT-light registered. The Foreign VAT is treated as part of the expense in accounting, so although you may not able to claim it back, it is not entirely lost either.&#13;&#10;&#13;&#10;Theoretically, with the OSS system, it is possible to claim back Foreign VAT (but if it is a small amount, it is probably not worth the effort)&#13;&#10;

CLIENTS OUTSIDE THE EUROPEAN UNION

Sales are *never* subject to CZ or any other type of VAT. You do not need to register for Full VAT or VAT-Light.&#13;&#10;&#13;&#10;Your only obligation is to file an Income Tax Return once a year (with your Trade License or  SRO)

Services from outside VAT are normally without VAT (this is not the same as 0% VAT!), unless the foreign company has a local (EU) VAT number.

Importing goods - the customs (CLO) and VAT of the country of entry apply. You need an EORI number if imported to Czech Republic, but only with Full-VAT you can claim the VAT back.&#13;&#10;&#13;&#10;For sporadic import and/or a business without VAT number in CZ, the VAT and CLO is handled per shipment (even without EORI number)