Have you heard that the VAT registration limit could be increased to CZK 2 million?
The Ministry of Finance of the Czech Republic has submitted a tax package, where, among other things, it proposes to increase the limit for mandatory VAT registration from one to two million crowns. The amendment to the VAT Act proposes to increase the annual turnover limit for VAT registration to CZK 2 million.
The VAT registration limit could be increased in the Czech Republic
Public
DEMO - Czech Republic
Author: Kristina Dosen
Category:
Fiscal subject related
Views:
513
Content accuracy validation date:
31.05.2022
Content accuracy validation time:
10:24h
Content
The current limit of CZK 1 million corresponded to the amount of 35,000 euros that the Czech Republic received upon joining the European Union in 2004 and which has not changed in 18 years, despite a significant increase in the price level. The increase of the limit up to 85,000 euros is supported by the EU itself, which will allow member states to implement this increase from 2025. Nevertheless, the Czech Republic has asked for the possibility to increase the limit for VAT paying to CZK 2 million before the entry into force of this directive. We assume that the application will be approved by the Czech Republic at the EU level in June this year at the latest. Otherwise, the proposed changes should take effect on 1 January 2023.
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