What Is the “Real Seat”?
Under Czech VAT law, businesses registering for VAT are required to declare not only their formal registered address but also their real seat (“skutečné sídlo”) — the place where key management decisions are made or where the business’s management is physically located.
For natural persons (sole traders), if there is no distinct place of management, the real seat is understood as their place of residence.
This concept is also aligned with EU Council Regulation No. 282/2011, which emphasizes that a mere postal address is not sufficient to constitute a place of economic activity.
Why Is the Real Seat Important?
The Czech tax authorities use the real seat to determine where a business is genuinely operated and to ensure proper tax supervision. This location must:
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Be contactable and traceable by the tax office,
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Enable effective cooperation during audits and investigations,
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Ensure availability of business records,
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Support the verification of actual economic activity.
If a company’s formally registered seat (as listed in public registers) differs from its actual place of business, it must notify the tax authority of its real seat.
How to Report or Update the Real Seat
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VAT payers registered before 1 January 2015 must notify their real seat by submitting a form:
“Notification of Change in Registration Data” via the Financial Administration’s online portal: www.daneelektronicky.cz. -
VAT payers registered after 1 January 2015 are required to provide both the formal and real seat in their initial VAT registration form.
Failure to report the real seat (or changes to it) is a serious offense under the Czech tax law.
What Are the Risks of Non-Compliance?
If a taxable person fails to report or update their real seat, the tax authority may impose sanctions, including:
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A fine of up to CZK 500,000 for breaching tax administrative obligations;
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Classification as an unreliable VAT payer;
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Cancellation of VAT registration, if it endangers the public interest or tax collection.
These measures are especially likely if non-reporting prevents the tax office from performing audits or obtaining necessary cooperation from the taxpayer.
Conclusion
Your real seat is more than just a registration detail — it’s a cornerstone of VAT compliance in the Czech Republic. Make sure your business’s actual operational base is correctly declared and kept up-to-date with the tax office to avoid penalties or enforcement actions.
If your real seat differs from your registered office, or if you’ve recently moved, don’t delay — submit the necessary notification electronically via the Czech tax portal.