Question 1

What are the current statutory VAT (DPH) rates in the Czech Republic?

Accepted Answer

Under the government consolidation package effective January 1, 2024, the Czech Republic operates with two main rates: a standard rate of 21% (general goods, services, electronics, fuel) and a unified reduced rate of 12% (food, non-alcoholic tap water, pharmaceuticals, medical devices, residential construction, public transport). Printed and electronic books are subject to a 0% rate.

Question 2

What is the mandatory threshold for Czech VAT registration?

Accepted Answer

Under Section 6 of the Czech VAT Act (Act No. 235/2004 Coll.), any business whose turnover exceeds 2,000,000 CZK for a period of 12 consecutive calendar months must register as a statutory VAT payer (platce DPH).

Question 3

How does the Czech VAT Control Statement (Kontrolní hlašení) function?

Accepted Answer

The Control Statement is a mandatory electronic report submitted monthly by VAT payers. Taxable supplies between VAT payers exceeding 10,000 CZK (inclusive of tax) must be reported line-by-line in Section A.4 (supplier) and Section B.2 (customer) with invoice numbers and counterpart VAT IDs (DIČ). Transactions up to 10,000 CZK are reported as aggregate lump sums in Section A.5 / B.3.

Question 4

When does the domestic reverse charge regime (§ 92a) apply?

Accepted Answer

Domestic reverse charge applies to specific B2B supplies within the Czech Republic, including building and assembly works, scrap metal, carbon emissions allowances, and wholesale IT/mobile phones exceeding 100,000 CZK. The supplier issues an invoice without VAT, and the business buyer calculates and remits the tax.

Question 5

How is VAT extracted from a gross (VAT-inclusive) price in Czechia?

Accepted Answer

To extract VAT from a gross price, divide the gross amount by 1 plus the VAT rate (e.g. Gross / 1.21 for 21% or Gross / 1.12 for 12%). The tax amount equals Gross minus Net.

DPH Rate / Regime	Statutory Clause	Covered Supplies & Goods	Input Tax Recovery	Kontrolní Hlašení Rules
21% Standard Rate	§ 47 odst. 1 písm. a	General merchandise, IT, legal/accounting services, cars, energy.	100% Deductible	>10k in A.4/B.2, ≤10k in A.5/B.3
12% Unified Reduced Rate	§ 47 odst. 1 písm. b	Foodstuffs, pharmaceuticals, tap water, passenger transport, housing.	100% Deductible	>10k in A.4/B.2, ≤10k in A.5/B.3
0% Zero Rate	§ 71i ZDPH	Printed, electronic & audio books, intra-community deliveries.	100% Deductible	Standard export / zero-rate reporting
Domestic Reverse Charge	§ 92a ZDPH	Construction & assembly, scrap metals, wholesale electronics.	Shifted to Buyer	Section A.1 (supplier) / Section B.1 (buyer)

Czech VAT (DPH) & Control Statement Calculator

Invoice & Tax Parameters

Itemized Invoice Ledger & Reporting CZK (Kč)

Comparative Matrix: Czech VAT Rates & Control Statement Tiers

Engr. Muhammad Shahzad

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