The Czech Senate (upper house of parliament) has passed the Bill on Amendments to the Value Added Tax Law on 11 December 2024, which amends the VAT Law to incorporate the Amending Directive to the VAT Directive (2020/285) of 18 February 2020 concerning the special scheme for small enterprises for cross-border supplies and VAT registration threshold, among other things.
It also states that a taxable person with a registered office in the Czech Republic must register for VAT from 1 January of the calendar year if their turnover exceeds CZK 2,000,000 in the previous calendar year. Additionally, taxable persons must register as VAT payers the day after their turnover exceeds CZK 2,536,500 within a calendar year.
The EU small business scheme allows taxable persons from other EU Member States to apply for Czech VAT exemption if their annual turnover in the Czech Republic stays below the exemption threshold and their total EU turnover does not exceed EUR 100,000. Czech residents can also apply for the small business VAT exemption in other Member States.
This follows after the Chamber of Deputies (lower house) approved the bill on 30 October 2024. The amendments go into effect starting 1 January 2025.
