What changes will the amendment to the VAT Act bring to entrepreneurs?
Posted: Sat Feb 22, 2025 10:29 am
Example
Mr. Jánošík is a natural person doing business with his registered office in Slovakia. He is not registered for VAT in Slovakia. He provides services related to real estate – construction work in Slovakia. He would now like to provide construction work on real estate located in the Czech Republic to Czech citizens – non-entrepreneurs – persons not liable to pay tax. He expects a turnover in the Czech Republic of less than 2 million CZK. Is he obliged to register as a VAT payer in the Czech Republic?
According to the legal regulation valid until 31. 12. 2024, a person not established in the country must register as a VAT payer when providing a supply with a place of supply in the country to persons not liable for tax. Services related to immovable property have the place of supply where the property is located. When providing construction work in the Czech Republic, Mr. Jánošík must register as a VAT payer in the Czech Republic. From 1. 1. 2025, Mr. Jánošík can voluntarily use the small business regime. If the conditions are met, he will register as a payer in the Czech Republic only after exceeding the turnover of CZK 2 million per calendar year or the turnover of EUR 100,000 in all EU countries combined - including Slovakia.
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The small business regime can also be used by Czech persons liable to pay tax in other EU countries , regardless usa phone number data of whether they are VAT payers or non-payers in the Czech Republic.
Example
Mr. Mácha is a Czech VAT payer who provides services related to real estate (construction work) in the country. He would like to use the small business regime in Germany from 2025.
Mr. Mácha must not exceed a turnover in the European Union (i.e. in all EU countries + in the Czech Republic) of EUR 100,000, must not exceed the limit for registration in Germany and must meet other conditions set in Germany for the small business regime. If he meets the conditions, he can register for the small business regime in Germany from 1 January 2025. He will submit the registration to his Czech tax administrator. In the application, he will indicate in which EU countries he wants to use the small business regime.
Mr. Jánošík is a natural person doing business with his registered office in Slovakia. He is not registered for VAT in Slovakia. He provides services related to real estate – construction work in Slovakia. He would now like to provide construction work on real estate located in the Czech Republic to Czech citizens – non-entrepreneurs – persons not liable to pay tax. He expects a turnover in the Czech Republic of less than 2 million CZK. Is he obliged to register as a VAT payer in the Czech Republic?
According to the legal regulation valid until 31. 12. 2024, a person not established in the country must register as a VAT payer when providing a supply with a place of supply in the country to persons not liable for tax. Services related to immovable property have the place of supply where the property is located. When providing construction work in the Czech Republic, Mr. Jánošík must register as a VAT payer in the Czech Republic. From 1. 1. 2025, Mr. Jánošík can voluntarily use the small business regime. If the conditions are met, he will register as a payer in the Czech Republic only after exceeding the turnover of CZK 2 million per calendar year or the turnover of EUR 100,000 in all EU countries combined - including Slovakia.
Advertisement
Corporate account – article
The small business regime can also be used by Czech persons liable to pay tax in other EU countries , regardless usa phone number data of whether they are VAT payers or non-payers in the Czech Republic.
Example
Mr. Mácha is a Czech VAT payer who provides services related to real estate (construction work) in the country. He would like to use the small business regime in Germany from 2025.
Mr. Mácha must not exceed a turnover in the European Union (i.e. in all EU countries + in the Czech Republic) of EUR 100,000, must not exceed the limit for registration in Germany and must meet other conditions set in Germany for the small business regime. If he meets the conditions, he can register for the small business regime in Germany from 1 January 2025. He will submit the registration to his Czech tax administrator. In the application, he will indicate in which EU countries he wants to use the small business regime.