Czech Republic-United Kingdom – Reciprocity Required For 13th Directive VAT Refunds

As of 1st January 2021, the United Kingdom is definitively considered as a third country. As a consequence, British companies which are intended to request VAT refund in Czech Republic were lied that refund can now only be granted under the so-called « 13ème Directive » procedure).

As a reminder, the Czech VAT will only be refunded if the following conditions are met:

  • There must be reciprocal agreements for VAT refund between the company’s country of establishment and Czech Republic;
  • The company has not carried out any operation that would require it to register for VAT in Czech Republic during the period the refund concerns;
  • The VAT has been regularly invoiced by the seller or the provider;
  • The VAT was paid for purchases of goods by the seller or the provider;
  • The VAT doesn’t concern spendings for which the VAT deduction is excluded according to Czech Republic regulation

In this context, the Czech government has indicated on 18 May 2021 that Czech Republic and the United-Kingdom have signed a retroactive reciprocal VAT refund agreement which taken effect from 1st January 2021.


Contribution by ASD Group.  ASD Group is an international firm. Expert since 2000: tax representative and agent. VAT refund, customs obligations, Intrastat, posting of workers.





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