Understanding VAT Regulations in the Czech Republic

VAT is an indirect tax on consumption that is referred to locally as "Daň z přidané hodnoty (DPH)" in the Czech Republic. At various points in the supply chain, it is used to describe the added value of products and services.

The Czech Republic is a member of the EU single market economy and VAT system. Local laws are superseded by the EU's VAT Directives, which form the basis of the VAT framework in every EU member state. The Tax and Customs Authorities in the Czech Republic oversee the administration of VAT, while the Moravian-Silesian Tax Authority is in charge of organizations operating outside of the country.