For foreign companies establishing operations in the Czech Republic, VAT registration and Czech Republic foreign company obligations are among the first practical compliance steps to address after incorporation. Understanding which registrations apply, when they are triggered and how they interact is essential for avoiding penalties and ensuring smooth cross-border operations from day one.
This guide explains the three key registration systems – VAT, VIES and EORI – their individual requirements, and how they relate to each other in the context of foreign company operations in the Czech Republic.
VAT Registration in the Czech Republic: Thresholds and Procedure
The Czech Republic applies VAT (DPH – Daň z přidané hodnoty) under the EU VAT Directive, with a domestic registration threshold and specific rules for foreign companies that differ from those applicable to Czech-resident businesses.
Mandatory registration threshold for Czech-resident companies Czech companies with taxable turnover exceeding CZK 2,000,000 in any consecutive twelve-month period are required to register for VAT. Registration must be completed within fifteen days of exceeding the threshold, and VAT obligations begin from the following day.
Foreign companies – lower threshold and different rules Foreign companies supplying goods or services in the Czech Republic are subject to different registration rules depending on the nature of their activities. In many cases, foreign companies are required to register for Czech VAT without a threshold, the obligation arises from the first taxable transaction in the country. This applies particularly to companies supplying goods with installation, providing services where the place of supply is the Czech Republic, or making distance sales exceeding the relevant threshold.
However, it is common and often advantageous to register for VAT voluntarily before reaching the threshold, particularly for companies making significant purchases in the Czech Republic on which they wish to claim the VAT back.
The VAT registration procedure VAT registration is handled by the Czech Financial Administration (Finanční správa). The application must be submitted to the tax office with jurisdiction over the company’s registered office address. For a Czech s.r.o., the registration is typically completed within thirty days of submission of a complete application, but it can take longer if some relevant information are missing in tha application. The registration generates the company’s VAT number (DIČ with the CZ prefix), which is used on all invoices, VAT returns and intra-EU communications.
VAT return frequency Newly registered VAT payers in the Czech Republic are assigned a monthly filing frequency by default. After one year of compliance, companies may apply to switch to quarterly filing if their turnover is below the relevant threshold. Monthly VAT returns must be filed by the 25th day of the month following the reporting period.
VIES: The EU VAT Information Exchange System Explained
VIES (VAT Information Exchange System) is the EU-wide system that allows businesses and tax authorities to verify the VAT registration status of companies across member states. For Czech-registered companies conducting intra-EU transactions, VIES registration is directly linked to the VAT registration and is not a separate application.
What VIES enables When a Czech company sells goods or services to a VAT-registered business in another EU member state, the transaction qualifies for the zero-rated intra-Community supply regim, meaning Czech VAT is not charged, and the buyer accounts for VAT in their own country under the reverse charge mechanism. To apply this zero rate correctly, the Czech seller must verify that the buyer is VAT-registered in their member state using the VIES database.
VIES registration for Czech companies A Czech company registered for VAT is automatically listed in the VIES database once its Czech VAT number is active. The listing allows counterparties in other EU member states to verify the company’s VAT status online through the European Commission’s VIES portal.
Recapitulative statements (Kontrolní hlášení) Czech VAT-registered companies that conduct intra-EU supplies of goods or services must file a recapitulative statement (kontrolní hlášení) listing all intra-EU transactions by customer VAT number and value. This statement is filed monthly for goods and quarterly for services, and must be submitted by the 25th day of the month following the reporting period. Errors or omissions in the recapitulative statement are a common audit trigger.
EORI Number: What It Is and When You Need It
The EORI (Economic Operators Registration and Identification) number is a unique identifier assigned to businesses engaged in customs activities within the EU. It is required for any company importing goods into the EU or exporting goods from the EU, including from and to the Czech Republic.
When an EORI number is required An EORI number is mandatory for companies that: import goods into the Czech Republic from non-EU countries, export goods from the Czech Republic to non-EU countries, or submit customs declarations in any EU member state. It is also increasingly required for companies participating in certain EU customs simplification programmes.
For a Czech s.r.o. engaged in trade with non-EU countries, the EORI number is required before the first customs declaration is submitted. Operating without an EORI number – or using an incorrect one – will prevent customs clearance.
How to obtain an EORI number in the Czech Republic EORI registration in the Czech Republic is handled by the Czech Customs Administration (Celní správa). To obtain the EORI number, a company should already have the VAT registration. The application is straightforward and can be submitted online. Processing times are typically short — in most cases the EORI number is issued within a few working days of a complete application. The EORI number is linked to the company’s IČO (Czech identification number) and remains valid for as long as the company is active.
EORI and VAT – the relationship The EORI number and the VAT number (DIČ) are separate identifiers serving different purposes. The VAT number is used for domestic tax reporting and intra-EU VAT transactions; the EORI number is used for customs declarations and cross-border trade with non-EU countries. A company engaged in both intra-EU trade and non-EU imports/exports will need both numbers active and correctly applied in the relevant transactions.
How to Manage Cross-Border VAT Compliance
Companies operating across multiple EU member states face a layer of complexity beyond domestic Czech VAT compliance. The key mechanisms to understand are the reverse charge, the One Stop Shop (OSS) and the Import One Stop Shop (IOSS).
Reverse charge on intra-EU services When a Czech company purchases services from a supplier in another EU member state — or provides services to a business customer in another EU member state, the reverse charge mechanism applies. The buyer accounts for VAT in their own country rather than the supplier charging it. For Czech companies receiving such services, the reverse charge creates both an input VAT deduction and an output VAT liability in the same Czech VAT return.
One Stop Shop (OSS) Czech companies selling goods or digital services to consumers (B2C) in other EU member states can use the OSS regime to report and pay VAT across multiple EU countries through a single Czech VAT registration, rather than registering in each country where they have customers. This significantly simplifies compliance for Czech companies with cross-border B2C sales.
Import One Stop Shop (IOSS) For Czech companies selling low-value goods (under EUR 150) imported from outside the EU directly to EU consumers, the IOSS allows the collection and remittance of VAT at the point of sale rather than at customs — simplifying the import process and improving the customer experience.
Conclusions
VAT registration, VIES compliance and EORI registration are three distinct but interconnected obligations for foreign companies operating in the Czech Republic. Each has its own trigger conditions, procedures and ongoing compliance requirements, and managing all three correctly from the outset is essential for avoiding penalties, delays at customs and audit risks.
The most common errors made by foreign companies without local support include: registering for VAT too late or not at all, incorrect application of the reverse charge on intra-EU purchases, failure to file recapitulative statements for intra-EU supplies, and missing EORI registration before the first customs transaction.
Axevera’s tax and accounting services in the Czech Republic cover the full VAT registration process, VIES compliance, EORI registration and ongoing VAT return management for foreign companies, all in English, Italian and Spanish. Our team has been supporting EU companies with Czech tax compliance for over 30 years.
FAQ: VAT, VIES and EORI in the Czech Republic
1. Does every Czech company need to register for VAT? Not immediately. Czech-resident companies must register for VAT once their taxable turnover exceeds CZK 2,000,000 in any twelve-month period. However, voluntary registration before reaching the threshold is common and often beneficial, particularly for companies making significant purchases on which they wish to reclaim input VAT. Foreign companies may face different and sometimes lower thresholds depending on their activity type.
2. How long does VAT registration take in the Czech Republic? For a Czech s.r.o. with a complete application, VAT registration typically takes up to thirty days from submission. The process involves registering with the Czech Financial Administration and obtaining the CZ-prefixed VAT number. Axevera manages the registration process as part of the standard post-incorporation compliance service.
3. Is a VIES number the same as a VAT number? Yes, in practical terms. The VIES listing uses the same VAT number (DIČ with the CZ prefix) that the company holds for domestic VAT purposes. Once a Czech company is VAT-registered and its number is active, it automatically appears in the VIES database (usually after one day). There is no separate VIES registration process, it is a consequence of VAT registration.
4. Does a Czech company need an EORI number if it only trades within the EU? No. The EORI number is required only for companies engaging in customs activities, importing from or exporting to non-EU countries. A Czech company that trades exclusively with other EU member states does not need an EORI number. However, if the company later begins trading with non-EU countries, the EORI must be obtained before the first customs declaration.
5. What happens if a Czech company misses a VAT filing deadline? Late VAT returns in the Czech Republic are subject to penalties calculated as a percentage of the unpaid tax, plus interest on late payment. Repeated late filings can also trigger a tax audit. The Czech Financial Administration has become increasingly proactive in identifying companies with compliance gaps, making timely filing and payment a priority from the first VAT period.
