VAT registration in the Czech Republic step by step: What you'll need and how group registration works

Deciding "we need to register" is only the start, the practical process is what actually matters.

This article focuses on the registration process itself and on the option of group VAT registration for connected companies. The question of when the VAT registration obligation actually arises is covered in our separate article on VAT registration for foreign companies.

What documents and steps does registration require

VAT registration is filed electronically, typically through the MOJE daně portal or via an authorized representative:

1. Registration application: Filed on the standard registration form, electronically, stating the company's identification details and the reason the registration obligation arose.
2. Supporting documents: An extract from the commercial or other foreign register, a power of attorney if a tax advisor or accounting firm handles the registration on the company's behalf, and a document proving economic activity in Czechia, such as a contract or invoice.
3. VAT ID assignment and registration: Once approved, the company receives a tax identification number and is entered into the VAT payer register, which business partners can verify through the VIES system.

Group VAT registration for connected companies

If a foreign company has several companies in Czechia connected through ownership or personnel, registering the whole group as a single VAT payer can be more efficient:

Connected persons with a registered seat or establishment in Czechia register as a single entity and file one combined VAT return. Transactions between group members are not subject to VAT, which simplifies invoicing and reduces administration within the group.

This is the solution typically for groups with several Czech subsidiaries that regularly trade goods or charge each other for services.

What to watch out for

1. Representation without a Czech seat: If the foreign company has no registered seat or establishment in Czechia, registration needs to go through a tax representative who acts on the company's behalf toward the tax authority.
2. Timeliness of registration: A late registration can lead to additional tax assessments and penalties for the period during which the registration obligation already existed.
3. Ongoing obligations after registration: VAT registration is not a one-off task. It's followed by regular VAT returns and control statements, which a foreign entity must manage even without a physical presence in Czechia.

Without knowledge of local practice registration can easily drag on for weeks. At CATO, we have been helping foreign companies with VAT registration, including group registration for connected companies, since 1996.

I want to register my company for VAT in the Czech Republic.