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Czechia aims to double VAT registration threshold

New government aims to stimulate struggling economy by reducing tax and compliance burden for small businesses

UPDATE: this proposal has been paused until at least 2023.

The new Czech government is aiming to increase the resident VAT registration threshold from CZK 1 million to CZK 2 million (approx €82,000) per annum. Once above this limit, businesses should apply for a VAT

There is no VAT registration threshold for non-resident supplying relevant taxable goods or services.  Check EU VAT registration thresholds here.

The coalition government, sworn in last month, faces high unemployment rates, ballooning inflation and a large government deficit.  It had already announced the measure last year, but a delay in the start of the government delayed implementation.

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.

2023 EU VAT registration & Intrastat reporting threshold

Country VAT Registration thresholds Intrastat thresholds
Resident Non-resident Arrivals Dispatches Arrivals Statistical Dispatches Statistical
EU One-Stop Shop €10,000 €10,000 EU sellers only - - - -
Austria €35,000 Nil €1,100,000 €1,100,000 €12m €12m
Belgium €25,000 Nil €1,500,000 €1,000,000 €25m €25m
Bulgaria BGN 100,000 Nil BGN 700,000 BGN 1m €7.3m €14.7m
Croatia €40,000 Nil €400,000 €200,000 €345,000 €400,000
Cyprus €15,600 Nil €270,000 €75,000 €2.7m €5.8m
Czechia CZK 2m Nil CZK 12m CZK 12m CZK 12m CZK 12m
Denmark DKK 50,000 Nil DKK 22m DKK 11m DKK 22m DKK 11m
Estonia €40,000 Nil €400,000 €270,000 €400,000 €270,000
Finland €15,000 Nil €800,000 €800,000 €800,000 €800,000
France Goods €85,800 Services €34,400 Nil €460,000 €460,000 €460,000 €460,000
German €22,000 Nil €800,000 €500,000 €48m €50m
Greece Nil Nil €150,000 €90,000 €150,000 €90,000
Hungary  HUF 12m Nil HUF 250m HUF 140m HUF 5bn HUF 14bn
Ireland Goods €75,000 Services €37,500 Nil €500,000 €635,000 €5m €34m
Italy €85,000 Nil See country guide See country guide See country guide See country guide
Latvia €40,000 Nil €330,000 €200,000 €4m €6m
Lithuania €45,000 Nil €500,000 €300,000 €7m €10m
Luxembourg €35,000 Nil €250,000 €200,000 €4m €8m
Malta Goods €35,000 Other €30,000 Nil €700 €700 €700 €700
Netherlands €20,000 Nil €5m €1m €5m €1m
Poland PLN 207,000 Nil PLN 5m PLN 2.7m PLN 80m PLN 128m
Portugal Nil Nil €400,000 €400,000 €5m €6.5m
Romania RON 445,500 Nil RON 1m RON 1m RON 10m RON 20m
Slovakia €49,790 Nil €1m €1m €1m €1m
Slovenia €50,000 Nil €1m €1m €4m €9m
Spain Nil Nil €400,000 €400,000 €400,000 €400,000
Sweden SEK 80,000 Nil SEK 15m SEK 4.5m SEK 15m SEK 4.5m
Non-EU
Iceland ISK 2m
Montenegro €30,000 n/a n/a n/a n/a
Norway NOK 50,000 Nil n/a n/a n/a n/a
Russia RUB 8m (on application) Nil n/a n/a n/a n/a
Switzerland CHF 100,000 CHF 100,000 global income n/a n/a n/a n/a
Turkey Nil Nil n/a n/a n/a n/a
UK (Northern Ireland - EU Intrastat only) £85,000 Nil £500,000 £250,000 n/a n/a

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