Type: Legislation
Starting 1 January 2025, the Czech Republic will raise its VAT registration threshold from CZK 2,000,000 to CZK 2,536,500 (€100,000). This aligns with the EU’s Small Enterprise VAT threshold reforms, allowing small EU-based businesses to sell across member states under their home country’s VAT registration if annual sales remain below €100,000. The change simplifies VAT compliance for small businesses within the EU. However, non-resident businesses are excluded from this threshold and must register immediately if providing taxable supplies like imports, domestic sales, or event admissions. This adjustment promotes consistency across the EU for VAT regulations affecting small enterprises.
Effective date: 1 January 2025
