Czechia’ Ministry of Finance wants to raise its Value Added Tax registration threshold from CZK 1million to CZK 2million (approx €79,000) from 1 January 2021. This will lift over 100,000 taxpayers out of the VAT regime. The current CZK 1million threshold has been in place for over 15 years.
Permission to raise VAT registration requires EC permission
The rise will require an application to the European Commission, but this should be forthcoming. Under the terms of the EU VAT Directive, member states are limited to a threshold of €35,000 – which is around the CZK 1million threshold. From 2025, EU VAT registration cap of €35,000 will be raised to €85,000.
The EC will generally grant a temporary rise and derogation from the Directive and the Ministry of Finance is aiming for a three-year permission to the end of 2024. At this point, there can be an evaluation of the effects.
2022 EU VAT registration and Intrastat reporting threshold
|Country||VAT Registration threshold||Intrastat threshold|
|EU One-Stop Shop||€10,000||€10,000 EU sellers only||n/a||n/a|
|Bulgaria||BGN 50,000||Nil||BGN 520,000||BGN 780,000|
|Croatia||HRK 300,000||Nil||HRK 2.6m||HRK 1.5m|
|Czech Republic||CZK 1m||Nil||CZK 12m||CZK 12m|
|Denmark||DKK 50,000||Nil||DKK 13m||DKK 10m|
|France||Goods €85,800 Services €34,400||Nil||€460,000||€460,000|
|Hungary||HUF 12m||Nil||HUF 170m||HUF 100m|
|Ireland||Goods €75,000 Services €37,500||Nil||€500,000||€635,000|
|Malta||Goods €35,000 Other €30,000||Nil||€700||€700|
|Poland||PLN 207,000||Nil||PLN 4m||PLN 2m|
|Romania||RON 445,500||Nil||RON 900k||RON 900k|
|Sweden||SEK 30,000||Nil||SEK 9m||SEK 4.5m|
|Russia||RUB 8m (on application)||Nil||n/a||n/a|
|Switzerland||CHF 100,000||CHF 100,000 global income||n/a||n/a|
|UK (Northern Ireland - EU Intrastat only)||£85,000||Nil||£500,000||£250,000|