Are you registered for VAT in the Czech Republic and have your employees incurred transportation expenses (e.g. taxi fares, public transport fares, fuel, and road tolls), accommodation expenses and expenses for professional training in relation to business trips? Did your company purchase goods in another EU Member State and the goods remained in the territory of the respective EU Member State? Does your company present itself at trade fairs and exhibitions in other EU Member States?

In such a case, we would like to inform you about the possibility to apply for a VAT refund from other EU Member State in the Czech Republic, paid on goods and services in another EU Member State through an electronic VAT refund application when meeting the specific conditions of respective EU Member State.

Deadline for submission of VAT refund application

VAT refund application for VAT refund period shall be submitted by 30th September of the calendar year following the “VAT refund period” (i.e. deadline for submitting the VAT refund application for the calendar year 2023 is on the 30th September 2024).

VAT refund period

The period for VAT refund from other EU Member State in the Czech Republic shall not exceed one calendar year but shall not be less than 3 calendar months; a VAT refund application may be submitted for a period less than 3 calendar months in case that the VAT refund period represents the remainder of the calendar year.

Who is entitled to reclaim VAT?

• A company, which is registered to VAT in the refund period in the Czech Republic.
• A company, which has its seat, place of business or establishment in the Czech Republic.
• A company which does not have its seat, place of business or establishment in another EU Member State (state of VAT refund) according to the rules set by the respective EU Member State.
• A company which did not carry out only VAT exempt supplies without the right to deduct in the VAT refund period.
• A company which did not deliver goods and did not provide services which are considered to be delivered or provided in the state of VAT refund in the VAT refund period. Exceptions are taxable supplies which are subject to the reverse charge mechanism and transport, or ancillary services exempt from VAT.

Limits of the amount of VAT

• 400 EUR (or the equivalent in the national currency) for the period less than one calendar year but at least 3 calendar months.
• 50 EUR (or the equivalent in the national currency) for the period of one calendar year or for the remainder of the calendar year.
• Individual EU Member States may set their own limits of reclaimable VAT amounts.
• The limit applies to the whole VAT refund application and not to individual tax documents.

Process of applying for VAT refund from other EU Member State in the Czech Republic

1. First, an application for access to the “Application for VAT refunds from other EU Member States” available on the tax web portal of the Financial Administration of the Czech Republic administrated by General Financial Directorate must be filed.
2. The tax administrator decides on the application within 15 days from the date the tax administrator received the application at the latest.
3. Subsequently, it is possible to submit VAT refund application via the website of the tax authorities. Following that VAT refund application is forwarded to the EU Member State of VAT refund via the web portal.
4. Tax administrator of the EU Member State of VAT refund issues the decision within 4 months from the date the tax administrator received the VAT refund application. In case the tax administrator requests additional information, the decision is issued within the period of maximum of 8 months from the date the tax administrator received the VAT refund application.

Why to choose Accace services when applying for VAT refund from other EU Member State in the Czech Republic?

• Applying for a VAT refund from other EU Member State in the Czech Republic is a complicated and administratively demanding process.
• Individual EU Member States may have special rules under which VAT refund can be claimed (e.g., some Member states do not allow the refund of VAT paid on fuel) as well as different requirements for the format and structure of the VAT refund application.
• Tax administrator of the EU Member State for VAT refund often requires additional explanations and documentation in the language of the EU Member State to assess the VAT refund application.
• In case the formal requirements of the EU Member State of VAT refund are not fulfilled, the tax administrator may reject the VAT refund application.

If you are interested in our professional assistance in this respect, please do not hesitate to contact us! We will be pleased to assist you.

Stanislav Železný

Tax Partner | Accace Czech Republic

Book a meeting with Stanislav

Marcela Hýnarová

Senior Tax Consultant | Accace Czech Republic

Get in touch with us

Is your company registered to VAT and has it purchased goods in the UK that have remained in the territory of this country? Do your employees travel to Great Britain on business trips and does your company cover the costs associated with transport, accommodation or professional trainings? Does your company participate in exhibitions or fairs in the United Kingdom?

In this case, we would like to inform you about the possibility to apply for a refund of VAT paid for goods and services. Even after Brexit, i.e., the exit of Great Britain from the European Union (from 1 January 2021), it is possible to apply for a refund of VAT paid in the UK based on the reciprocity principle. However, the application is no longer submitted via the portal of the Czech tax authority, but directly by the British Financial Administration (HMRC).

The conditions for a tax refund from the UK remain similar to when claiming a refund from other EU member states. At the same time, there are several differences which are summed up below.

VAT refund period

The period for UK VAT refund is from 1 July of a given year to 30 June of the following year and thus amounts to 12 calendar months. The application can be submitted at least for 3 calendar months.

Deadline for submission of VAT refund application

An application for a UK VAT refund for the tax refund period must be submitted no later than on 31 December of the year in which the refund period ends. The application deadline for the period from 1 July 2022 to 30 June 2023 is therefore on 31 December 2023.

Limits of the amount of VAT

If you are claiming tax for a period of less than 12 months, the minimum claim amount must be at least £130.

VAT refund application process

1. The VAT refund application must be accompanied by the Certificate of status, Tax Refund Application, relevant invoices and other supporting documents.
2. Czech companies can only submit an application by post, as the Czech Financial Administration does not yet have technical sources for issuance of electronic Certificate of status.
3. The UK tax authority will deliver a decision to the applicant within 6 months from receiving the claim for VAT refund. However, usually, HMRC will request additional information towards the end of this period and the refund might be therefore significantly extended.

Why choose Accace services when applying for VAT refund?

• VAT refund application from other EU Member States and mainly from the UK is complicated and administratively demanding process.
• Individual EU Member States and the UK may have special rules under which VAT refund can be claimed (e.g. some Member states do not allow to refund VAT paid on fuels) as well as different requirements for the format and structure of the VAT refund application.
• Tax administrator often requires additional explanations and documentation in order to assess the VAT refund applications.
• In case that the formal requirements for a VAT refund are not fulfilled, the tax administrator may reject the VAT refund application.

We will be pleased to assist you in the VAT refund process and provide everything you need. Do not hesitate to contact us!

Stanislav Železný

Tax Partner | Accace Czech Republic

Book a meeting with Stanislav

Marcela Hýnarová

Senior Tax Consultant | Accace Czech Republic

Get in touch with us