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Group VAT registration in the Czech Republic: Important deadlines to consider | News Flash

August 22, 2024
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Czech
Accace - Group VAT registration in the Czech Republic

Let us remind you that the deadline for group VAT registration in the Czech Republic is approaching. The VAT group becomes VAT payer from January 1st, 2025 if the application for VAT registration is submitted no later than October 31st, 2024.

In case that the VAT application is submitted later, the VAT group will be registered for VAT not earlier than January 1st, 2026. The same rule applies for the eventual addition of a new member to the VAT group or exit a member from the VAT group.

Group VAT registration in the Czech Republic: What is it?

The VAT group is a specific group of related companies that is treated as one taxpayer for VAT purposes, i.e. supply provided between members of the VAT group is not subject to VAT. The VAT group registration is commonly used by related companies where there is mutual invoicing and for some reason, it is not possible to claim full VAT deduction. When deciding to create VAT group it is necessary to take into account the nature of the supplies that will be provided by the VAT group as a whole (i.e. to the third parties) and its impact on the potential obligation to shorten the VAT deductions. It is thus important to consider whether the positive effect of VAT group registration will not be outweighed by the negative effect caused by the partial VAT deductions. Every decision to register as a VAT group should be preceded by a specific analysis.

Are you considering whether voluntary group registration for VAT purposes is the right solution for you? We will be happy to analyse your company’s situation and arrange everything you need – from setting up a VAT group through all the administration to processing your VAT return. Do not hesitate to contact our Czech VAT team.

Stanislav Železný
Tax Partner | Accace Czech Republic
Book a meeting with Stanislav
Marcela Hýnarová
Senior Tax Consultant | Accace Czech Republic
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