VAT registration threshold (turnover) to be increased in the Czech Republic

The Czech government filed the application at last year’s end to the EU commission to get permission to increase the VAT-related turnover. Currently, the turnover in CZ is CZK 1.000.000 for the preceding 12 months. It reflects article 287 of the VAT directive, where the turnover is set to EUR 35.000 for CZ.

CZ asks the EU for increasing the turnover to EUR 85.000. If approved by the Council of the EU, CZ would increase this limit until the end of 2024. Since 2025, the optional threshold of EUR 85.000 will be in place for all EU member states.

This move should alleviate the administrative burden from the entrepreneurs (and from the tax authorities as well). Czech tax authorities currently administer around 520 thousand VAT registered entities.

Ondřej Štědrý
Tax Adviser
Prague
Czech Republic

 

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