In most case, VAT is payable at a rate of 19%. There is a reduced rate of 9% that refers in the main to:
Services for the provision of water and heating.
Food and medications
Newspapers and books
The threshold for VAT registration is CZK 1 million (turnover).
Comment: Financial institutions are not charged VAT.
Reporting Periods
The reporting periods for businesses are monthly or quarterly. The VAT must be paid by the 25th day after the relevant reporting period.
When the periodic report shows a surplus of VAT inputs over VAT from transactions, a refund will be received within 30 days.
Should there be an outstanding debt to other tax authorities, the share due to the other tax authorities will be offset against the turnover and the balance repaid to the owner of the business on his request.
VAT Exempt/ 0% VAT
The following forms of receipts may be numbered among the receipts exempt from VAT:
