From January 1, 2026, a new electronic VAT refund system for non-EU visitors will be implemented with specific requirements for sellers. With effect from January 1, 2026, the amendment establishes a new electronic system for returning VAT to visitors from non-EU nations. The fundamental requirements—non-EU resident, personal use, export within three months, CZK 2,000 per receipt, including... Read more

This document is intended to provide a general overview of the entire fiscalization in the Czech Republic, covering the EET 1.0 , the abolishment of EET 1.0, current legal requirements and the next EET 2.0. It presents a timeline of events that occured and differences between them Read more

The Czech government plans to implement EET 2.0 by January 1, 2027, exempting small businesses and occasional earnings while ensuring a fair environment for entrepreneurs without mandatory receipts. After the latest parliamentary elections, Electronic Sales Records (EET) is back into consideration. The emerging government's published program statement and legislators' media outlets on the subject... Read more

Companies must reverse VAT deductions on unpaid invoices after six months, affecting cash flow and compliance. This rule applies to transactions from January 1, 2025, with exceptions for reverse charge supplies. Late payments allow VAT reclamation within two years. Accurate record-keeping is essential for partial payments and offsets, as they impact the adjustments. Companies face a new VAT rule r... Read more

The European Commission has approved modifications to modernize the VAT system, including mandatory electronic invoicing and digital reporting for cross-border transactions, VAT application in the platform economy, and VAT registration extension Aiming to lower administration and capture the risk of VAT fraud in the digital economy, changes have been approved at the EU level. A number of modifica... Read more

The Czech VAT Act No. 235/2004 Coll. regulates the taxation of goods, services, intra-Community transactions, and imports, setting out who is liable for VAT and when it becomes chargeable. It establishes the standard and reduced VAT rates, along with exemptions for areas such as education, health care, financial services, international transport, and supplies for diplomatic missions or vessels. Read more