As of 1.1.2025, there are new rules for mandatory VAT registration:

-1st limit of your turnover 2 000 000 CZK

-2nd limit of your turnover 2 536 500 CZK

-limits are newly considered for calendar year (1.1.-31.12.) not for the past 12 months\

-exceeding both limits must be watched to the specific day not to the specific calendar month\

-you must submit VAT application (voluntary or mandatory) by 10th day from the day the limit was exceeded

When exceeding the 1st limit you can choose either to become VAT payer:

- a) voluntarily from the 1st day after exceeding the limit (only in case the VAT application is submitted on time)

- b) mandatorily from the new calendar year (1.1. of the following year)

If you choose b) option, you still need to watch exceeding the 2nd limit 2 536 500 CZK till the end of the relevant year. If that happens, you are becoming VAT payer from the 1st day after exceeding the 2nd limit.

Our recommendation: if you think you will exceed the 2nd limit within the relevant year, become voluntary VAT payer (option a)) right after exceeding the 1st limit to avoid tracking 2nd limit and submitting second VAT application.

When exceeding the 2nd limit, you became VAT payer from the 1st day after exceeding the 2nd limit.

Note: the day you become VAT payer, you must start charging VAT on your issued invoices. You can start claiming VAT from received invoices.

Examples:

You exceed the turnover 2 mil CZK in the period 01-12/2024, you must submit the mandatory VAT application till 15th Jan 2025 and become VAT payer from 1st Feb 2025 (old rules applied)

You exceed the turnover limit in the period 03/2024-02/2025. Only when the 1st or 2nd limit is exceeded in the period 01-02/2025, you must become VAT payer.

You exceed the 1st limit on 10th Mar 2025, you need to decide if you will become:
-voluntary VAT payer as of 11th Mar 2025 (only if VAT application was submitted on time)
-mandatory VAT payer as of 1.1.2026. In this case you must watch exceeding 2nd limit till end of 2025.

You exceed the 2nd limit 18th Nov 2025, you must submit VAT application by 10th day from the date of exceeding the 2nd limit and become VAT payer from 19th Nov 2025 (if you have already submitted VAT application and should have become VAT payer as of 1.1.2026-this is no longer valid).

Deregistration: if you became VAT payer on 11th Mar 2025 by exceeding one of the limits, you must remain VAT payer for the rest of 2025 and whole year 2026. If you don´t exceed the limits in 2026, you can deregister in 2027.

Termination of business: if you, as mandatory VAT payer in 2025, terminate your business in 04/2025, VAT registration must be cancelled.
If you sell/buy something where VAT must be applied in 09/2025, you become mandatory VAT payer again.

Fees for our help to you:

2 300 CZK mandatory registration to full VAT
3 300 CZK voluntary registration to full VAT
1 200 CZK/month VAT return
  600 CZK/month VAT ledger
600 CZK/month EU sales list