VAT Registration 2026: When You Must Become a VAT Payer

Value Added Tax (VAT) is one of the most important taxes a Czech entrepreneur will encounter. Once your turnover exceeds the statutory threshold, you are required to become a VAT payer — with all the rights and obligations that come with it. Since 2025, the rules for VAT registration have changed significantly: a new way of calculating turnover, two turnover thresholds, and different deadlines for submitting your application. These changes remain fully in effect for 2026.

In this guide, we'll explain everything you need to know about VAT registration — when it's mandatory, when voluntary registration makes sense, what the deadlines are, and what to expect after registration.

Current VAT Rates in 2026

Before we dive into registration, let's recap the current VAT rates in the Czech Republic. Two VAT rates have been in effect since 1 January 2024:

When You Are Required to Register for VAT

First Turnover Threshold: CZK 2,000,000

If your turnover in a calendar year exceeds CZK 2,000,000, you are required to submit a VAT registration application. This threshold was raised from the original CZK 1,000,000 (applicable until the end of 2022) to CZK 2,000,000 as part of the consolidation package.

What counts towards turnover: Turnover means the total consideration excluding tax that you are entitled to for supplies with a place of supply in the Czech Republic. The following are included:

• Supply of goods
• Provision of services
• Transfer of real estate

What does NOT count towards turnover:

• Supplies exempt from tax without the right to deduct input tax (e.g. financial and insurance services)
• Income that is not subject to VAT (e.g. employment income)
• Advance payments received (only the actual supply counts towards turnover)

Second Turnover Threshold: CZK 2,536,500

The VAT Act amendment introduced a second, higher threshold from 2025, corresponding to approximately EUR 100,000. This threshold works differently from the first:

• If your turnover exceeds CZK 2,536,500 during a calendar year, you automatically become a VAT payer from the day following the date of exceeding the threshold.
• There is no option to defer until 1 January of the following year.
• You must notify the tax authority of this fact.

Other Grounds for Mandatory Registration

In addition to exceeding the turnover threshold, there are other situations in which you must register for VAT:

Voluntary VAT Registration

You can also register for VAT voluntarily, even with turnover well below CZK 2,000,000. Voluntary registration can be advantageous in certain situations.

When Voluntary Registration Makes Sense

How to Register for VAT — Step by Step

Tax Period After Registration

After VAT registration, you automatically become a monthly VAT payer. You can switch to a quarterly tax period only after the end of the calendar year following the year of registration, provided your turnover did not exceed CZK 10,000,000.

What to Expect After VAT Registration

Becoming a VAT payer means taking on a range of new obligations. It's best to prepare for them before the registration itself.

New Obligations as a VAT Payer

1. Issuing tax documents — invoices must contain all mandatory details under Section 29 of the VAT Act (DIČ, date of taxable supply, VAT rate, tax base, VAT amount).

2. Maintaining VAT records — you must record all received and issued taxable supplies, including data required for the control statement.

3. Filing VAT returns — a regular return must be filed by the 25th of the month following the end of the tax period.

4. Filing control statements — OSVČ submit control statements by the deadline for filing the tax return (quarterly or monthly, depending on the tax period).

5. Remitting VAT — the difference between output VAT and input VAT must be paid to the tax authority by the return filing deadline.

6. Recapitulative statements — if you supply goods or provide services to VAT-registered persons in other EU member states, you must file a recapitulative statement.

Right to Deduct VAT Upon Registration

When registering for VAT, you are entitled to claim a deduction for VAT on assets and inventory you hold on the effective date of registration. This deduction is claimed in your first VAT return.

Cancellation of VAT Registration

If your circumstances change and VAT registration is no longer advantageous or required, you can apply for deregistration.

Conditions for Deregistration

• At least 1 year has passed since the date of registration (for voluntary registration)
• Turnover over the preceding 12 consecutive calendar months has not exceeded CZK 2,000,000
• You are not making supplies that would require mandatory registration

Obligations Upon Deregistration

Upon deregistration, you must:

• Remit VAT on assets and inventory for which you claimed a deduction
• File your final VAT return and control statement
• Return your VAT registration certificate

Key Deadlines for 2026

Frequently Asked Questions About VAT Registration (FAQ)

Does income from abroad count towards the turnover threshold?

For VAT registration purposes, turnover includes consideration for supplies with a place of supply in the Czech Republic. If you provide services abroad and the place of supply is in another country (typically B2B services to EU clients), that income does not count towards the threshold. However, if you provide services to taxable persons established in other EU countries, you may be required to register as an identified person.

Can I register for VAT retroactively?

No. VAT registration cannot take effect retroactively. You become a VAT payer from the date set by law (from 1 January of the following year upon exceeding the first threshold, or from the day following the date of exceeding the second threshold). If you submitted your application late, you may face penalties, but the effective date of registration does not change.

What happens if I exceed the turnover threshold and don't register?

If you fail to submit a registration application on time, the tax authority will register you ex officio. You will also have to retrospectively declare and pay VAT for the period during which you should have been a registered payer, and you may face penalties for late registration and late filing of returns.

How does the flat-rate tax regime interact with VAT?

A self-employed person in the flat-rate tax regime may not be a VAT payer. If you become a VAT payer (by exceeding the turnover threshold), you automatically leave the flat-rate tax regime and must file a regular income tax return.

Can I be a VAT payer and still use the expense lump sum?

Yes. VAT registration does not affect your ability to claim expenses as a percentage of income (the expense lump sum) in your income tax return. These are two separate taxes with separate rules.

What is a tax period and how do I choose one?

The tax period determines how often you file VAT returns. Upon registration, it is automatically set to monthly. You can request a switch to quarterly filing at the earliest after the end of the calendar year following the year in which you became a VAT payer, and only if your turnover did not exceed CZK 10,000,000. You notify the tax authority of the change by the end of January of the relevant year.

What is the difference between an identified person and a VAT payer?

An identified person is a non-VAT-payer who carries out cross-border transactions (e.g. receives services from EU suppliers). They have a tax identification number (DIČ) and file VAT returns, but only for cross-border transactions. For domestic transactions, they remain a non-payer. Unlike a full VAT payer, an identified person cannot deduct input VAT.

Monitor Your Turnover Automatically with DokladBot

Keeping track of your turnover for VAT registration purposes is essential — exceeding the threshold without registering on time means penalties. DokladBot helps you monitor your turnover automatically. Simply log your income via WhatsApp and DokladBot will alert you in good time when you're approaching the CZK 2,000,000 threshold.

It also helps you navigate the transition to VAT — advising on your new obligations, reminding you of return and control statement deadlines, and helping you issue correct tax documents.

Try DokladBot at dokladbot.cz — so that your VAT registration obligation never catches you off guard.

Useful Links to Official Sources

• Czech Tax Administration — information on changes to VAT payer status from 2025 — official information on the new registration rules
• MOJE daně portal — electronic submissions — portal for submitting registration applications and tax returns
• Czech Tax Administration — VAT — comprehensive information on value added tax
• Citizens' Portal — data mailboxes — for electronic communication with the tax authority

---

This article is for informational purposes only and does not replace professional tax advice. For guidance on specific situations, we recommend consulting a tax adviser. The information is current as of the date of publication (February 2026) and is based on Act No. 235/2004 Coll. on VAT, as amended.