VAT registration limit increased to CZK 2m

As we have already informed you, the Ministry of Finance prepared an amendment of tax legislation which among others increases the limit for mandatory VAT registration.

The amendment has been approved and will be published in the Collection of Laws soon. Most of the provisions will become effective from 1 Janaury 2023.

The approved version confirms the increase of a turnover (calculated for 12 consecutive months) for the mandatory VAT registration from CZK 1 million to CZK 2 million. The act includes several transitional provisions which among others stipulate the following:

  • If the taxable person reaches the turnover of CZK 1 million from November 2022 onwards (but does not exceed the CZK 2 million limit), they should already not be obliged to register for VAT anymore.
  • If a VAT payer did not exceed the CZK 2 million limit in the past 12 consecutive months and wants to deregister from VAT, they should be allowed to do so within 5 days after the amendment is published. It will also be possible to deregister later, but there will be some further conditions that have to be met such as being a VAT payer for at least a year, etc.

Please do not hesitate to contact us should you need any assistance with the above.