VAT in the Czech Republic 2026
Czech VAT operates as a VAT deduction. In 2026, the standard rate is 21%, and the reduced rate is 12%. For Polish companies, it's crucial to determine whether a given sale, service, warehouse, or import is subject to settlement in the Czech Republic.
If you need a DIČ number, check out our VAT registration service abroad. Once you have the number, we can also process VAT returns abroad.
VAT rates in the Czech Republic 2026 – 21% and 12%
There are two main VAT rates in the Czech Republic: the standard 21% and a reduced 12%. As of January 1, 2024, the previous reduced rates of 10% and 15% have been replaced by a single 12% rate. The rate is valid, but you must first check whether the transaction is subject to the Czech VAT tax. The Czech Public Administration Portal also describes general VAT rules and rates in the Czech Republic
Basic rate
For goods and services that do not benefit from a reduced rate, exemption or special treatment.
Reduced rate
For selected goods and services specified in Czech regulations and annexes. Requires classification.
Czech VAT
In the documents you will find the names: DPH, DIČ, přiznání k DPH, kontrolní hlášení and souhrnné hlášení.
Taxenlight advises
Before setting rates in your sales system, prepare a map of your products and services. Separately mark local transactions, B2B with reverse charge, B2C via OSS, imports, and exempt sales.
When does a foreign company have to settle VAT in the Czech Republic?
A foreign company may be required to settle VAT in the Czech Republic even without a registered office, branch, or employees. The key factor is the place of taxation and whether the Czech buyer can settle VAT.
The goods are in the Czech Republic
A sale from a Czech warehouse may be a local sale in the Czech Republic, especially in the case of B2C or a buyer without the obligation to settle VAT.
The service takes place in the Czech Republic
This applies in particular to services related to real estate, assembly, installation, events or services outside the general rule.
OSS or reverse charge not working
If the buyer does not settle VAT and the sale does not fall within the OSS, Czech registration may be required from the first transaction.
Two levels of turnover for Czech companies
As of 2025, Czech mandatory registration rules for domestic entrepreneurs distinguish between limits of CZK 2,000,000 and CZK 2,536,500 per calendar year. These limits primarily apply to companies established in the Czech Republic. A foreign company may be required to register from the first local taxable transaction if reverse charge, OSS, or the SME exemption do not apply.
When might a foreign company need a Czech VAT number?
A Czech VAT number may be required when a company performs a locally taxable transaction and must self-report the VAT return. This is most often necessary for sales from a Czech warehouse, imports and subsequent sales, deliveries with assembly, or transactions where reverse charge does not apply. OSS and the SME exemption may limit the registration requirement to transactions covered by the procedure.
Do you need a Czech VAT / DIČ number?
Detailed requirements, the process of obtaining DIČ and the required documents are described in a separate guide.
Reverse charge in the Czech Republic – when does it work?
Reverse charge means that the buyer, not the foreign seller, settles VAT. In B2B transactions, it can reduce the requirement for local VAT registration, but it is not automatic.
Taxenlight advises
Reverse charge isn't just a formula on an invoice. First, verify the taxable place, the buyer's status, and the type of service, and only then issue an invoice without Czech VAT. It's also helpful to verify the contractor's VAT number in VIES.
Obligations after obtaining a Czech VAT number
After registration, a company must periodically settle Czech VAT. The basic document is the VAT declaration (Přiznání k DPH). Depending on the type of transaction, an audit report and summary information may also be issued.
VAT declaration
It covers the settlement of output and input tax, including relevant domestic, cross-border and import transactions.
Control report
It provides detailed data from selected tax documents. It does not replace the VAT return and must be consistent with it.
Summary information
Applies to selected intra-EU transactions, including supplies of goods and certain B2B services.
The scope of reporting depends on the transaction
Not every company submits all three documents for every period. The obligation depends on the type of activities performed and the data reported in the Czech tax return.
How to settle VAT after obtaining DIČ?
Deadlines, types of reports, corrections and payments are described in the declaration guide.
Import VAT in the Czech Republic - customs clearance, importer and tax deduction
Importing goods to the Czech Republic requires analysis of customs clearance, importer, documents, Czech import VAT, right of deduction and further sale.
Who is the importer?
The importer's details in the customs documents should match the entity that wants to settle or recover VAT.
What happens to the goods?
Local sales in the Czech Republic are different, onward delivery to the EU is different, and B2C sales of imported goods are different.
How to settle and deduct VAT?
The settlement method depends, among other things, on the importer's status and Czech VAT registration. The right to deduct VAT requires meeting certain conditions and submitting the appropriate customs documents.
VAT refund from the Czech Republic for foreign companies
A foreign company can recover VAT paid in the Czech Republic if it incurs business-related expenses there and does not conduct local transactions requiring VAT registration. The Czech portal describes the VAT refund procedure from the Czech Republic, and the Tax Administration publishes separate information on refunds for EU companies.
VAT refunds must be distinguished from deducting VAT in Czech tax returns. A VAT-registered company typically recovers the tax through its declaration. An unregistered company may use the refund procedure if it meets the conditions.
Change from 2026: Foreign companies benefiting from the reciprocal refund must file a VAT refund declaration in the Czech Republic. For purchases with a taxable date of December 31, 2025, the previous procedure applied, and the deadline for filing the application was June 30, 2026.
When might a return be problematic?
When the invoice is incorrect, VAT was charged despite the reverse charge, the expense is unrelated to the business or the company should have registered for VAT in the Czech Republic.
VAT e-commerce in the Czech Republic – OSS, IOSS and B2C sales
For B2C sales to Czech consumers, OSS can be important. The procedure helps settle selected sales in one member state, but it does not replace local registration in every model. Czech public services also describe a VAT return for users of the One Stop Shop OSS scheme.
B2C Sales from Poland
It may cover classic distance selling to consumers in the Czech Republic if the company meets the conditions of the procedure.
Imported goods
It can simplify VAT for low-value shipments, but does not replace all customs duties.
OSS may not be enough
Once the goods are in the Czech warehouse, local sales from the stock require a separate VAT analysis.
Do you sell B2C to the Czech Republic and use OSS?
We will check which transactions can go through OSS and which require local registration, DIČ or separate reporting.
SME exemption for small companies selling to the Czech Republic
A company based in another EU country can benefit from the Czech SME exemption if it first registers with the system in the country of its registered office and covers the Czech Republic.
Turnover in the EU
Total turnover in the EU cannot exceed the limit in either the current or the previous calendar year.
Turnover in the Czech Republic
Czech exempt turnover must remain within the national limit.
Effect of dismissal
Sales covered by SME are exempt from VAT without the right to deduct input tax.
The limit alone is not enough
Before applying the exemption, a Polish company must register with the SME system in Poland and obtain the right to benefit from the exemption in the Czech Republic. Details of the procedure can be found in the registration guide.
Storage of goods in the Czech Republic and VAT
The Czech warehouse is one of the most significant risk points. If the goods are already in the Czech Republic and are sold to local customers, the transaction may be treated differently than a standard shipment from Poland.
Movement of goods
It is necessary to determine when the goods arrive in the Czech Republic and whether there is a movement of own goods.
Sale from stock
For B2C or non-VAT buyers, local registration may be necessary.
Data for declaration
Warehouse data must be included in the declaration, control and VAT records.
Taxenlight advises
If you use fulfillment in the Czech Republic, start with a goods flow map: where it comes from, where it is stored, who buys it and with what VAT number you issue an invoice.
The most important VAT risks in the Czech Republic
For a foreign company, the greatest risks include failure to register despite the obligation, incorrect application of the reverse charge or VAT rate, importer non-compliance with customs documents and selection of the wrong refund procedure.
No registration
The company carries out a transaction taxable in the Czech Republic, but does not obtain DIČ and does not report VAT.
Incorrect reverse charge
The seller assumes that the buyer settles the VAT even though the conditions are not met.
Incorrect VAT rate
The company applies 12% without a base or charges Czech VAT where reverse charge is in effect.
Importer and deduction
The importer does not agree with the entity that wants to deduct VAT in its customs documents.
Incorrect return path
The company submits a refund application even though it should settle VAT in the Czech Republic.
Practical VAT scenarios in the Czech Republic for Polish companies
VAT obligations in the Czech Republic are best analyzed based on specific sales models. The same company may operate via reverse charge in one scenario and require DIČ in another.
B2B consulting service
In many cases, VAT will be settled by the Czech buyer. It's important to verify the VAT number and the nature of the service.
Goods from the Czech warehouse
When selling locally to consumers or entities that do not settle VAT, a registration obligation may arise.
Assembly or installation
The place of taxation may be the Czech Republic. The status of the buyer determines whether reverse charge applies.
Import and resale
You need to check the import VAT, customs documents, right of deduction and subsequent sales invoice.
B2C online store
OSS can help with mail order sales from Poland, but does not solve sales from Czech stock.
Marketplace and fulfillment
The platform may change the reporting method, but it does not always exempt the seller from local VAT obligations.
Not sure if the Czech Republic requires DIČ?
We'll discuss warehousing, import, OSS, reverse charge, 21% and 12% rates, VAT registration, declarations, and inspections. After our conversation, you'll know where risks arise and what processes to implement.
VAT Czech Republic 2026 – key conclusions
VAT in the Czech Republic requires analysis not only of rates, but also of the sales model, place of taxation, buyer status, registration, import, OSS and reporting after obtaining DIČ.
21% is the starting point
The standard rate is 21% and the reduced rate is 12%, but you must first determine whether the transaction is subject to Czech VAT.
A non-resident has other risks
The threshold of CZK 2,000,000 does not automatically protect foreign companies from registration from the first transaction.
DIČ means process
The Czech VAT number triggers declarations, kontrolní hlášení, payments, corrections and correspondence with the office.
FAQ: VAT in the Czech Republic 2026
Frequently asked questions about DPH, 21% and 12% rates, reverse charge, OSS, SME, import and tax refund.
How much is VAT in the Czech Republic in 2026?
In 2026, the standard VAT rate in the Czech Republic is 21%. In addition, a reduced VAT rate of 12% applies to selected goods and services.
What does DPH mean in the Czech Republic?
DPH is Czech VAT, or daň z přidané hodnoty. In practice, it is value-added tax settled in the Czech Republic.
What goods and services may be subject to the 12% rate?
The 12% rate applies to selected goods and services specified in Czech law. Its application requires verification of the classification of the specific product or service.
When does reverse charge work in the Czech Republic?
Reverse charge may work in selected B2B transactions when the Czech buyer is a VAT payer or a VAT-identified person and, according to Czech rules, he is the one who settles the tax.
Can OSS replace local registration?
OSS allows for the settlement of selected B2C transactions, but does not cover every local sale, import or operation of goods stored in the Czech Republic.
Can a Polish company benefit from the SME exemption in the Czech Republic?
Yes, if it meets the limits of EUR 100,000 turnover in the EU and CZK 2,000,000 turnover in the Czech Republic and has previously registered in the SME system in Poland for the Czech Republic.
How is import VAT settled in the Czech Republic?
You must determine the importer, customs clearance method, customs document details, Czech registration, and the right to deduct. Further local or EU sales may create additional obligations.
How does a foreign company recover VAT from the Czech Republic?
A company registered in the Czech Republic generally deducts VAT on its return. An unregistered company may use the appropriate refund procedure if it does not perform activities requiring local settlement.
