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

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Marcela Hýnarová

Tax Manager | Accace Czech Republic

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