Czech Republic: VAT registration guidance effective January 2025
Information regarding the VAT payer status and registration procedure following an amendment to the VAT law
The General Financial Directorate (GFD) has issued information regarding the VAT payer status and registration procedure following an amendment to the value added tax (VAT) law that came into effect on January 1, 2025.
Background
The amendment introduced two annual turnover thresholds for mandatory VAT registration:
- The first threshold remains at CZK 2 million per calendar year, requiring registration on the first day of the year following the year the threshold is exceeded.
- The second threshold, a new maximum turnover of CZK 2,536,500, triggers immediate mandatory registration the day after it is exceeded.
Turnover is now monitored on a calendar year basis, effective January 1, 2025, excluding supplies made before December 31, 2024.
Changes also affect VAT payer status for taxable persons conducting VAT-exempt supplies without the right to deduct.
Registration procedure
Registration applications must be submitted within 10 working days of exceeding either turnover threshold or effecting a taxable supply with deduction rights. Immediate registration is possible after exceeding CZK 2 million, which would allow them to avoid monitoring the CZK 2,536,500 threshold, but applications must meet the statutory deadline—within 10 working days. If submitted late, registration occurs on the first day of the following calendar year.
Transitional procedures
Transitional provisions state that if the turnover threshold is exceeded before December 31, 2024, the law in effect until that date applies, requiring registration applications within 15 days after the month the threshold was exceeded. Retroactive registrations for 2024 conditions will follow the pre-2025 law.
Read a March 2025 report prepared by the KPMG member firm in the Czech Republic