VAT amendment: Changes in the conditions for VAT registration

One of the significant changes brought about by the VAT amendment is the modification of the rules for VAT registration. The General Financial Directorate (GFD) has issued information on these changes, which summarises the main novelties and transitional provisions.

Change in the calculation of turnover

From 2025, turnover for VAT registration will no longer be calculated for 12 consecutive months, but always for a full calendar year.
New turnover limits for registration

The amendment introduces two turnover thresholds:
- CZK 2,000,000 - if this amount is exceeded, the taxable person becomes a VAT payer from 1 January of the following year.
- CZK 2,536,500 - if this higher threshold is exceeded by the end of the year, VAT registration is mandatory from the following day.

However, the amendment also allows a taxable person to become a taxable person immediately after exceeding CZK 2,000,000 if he or she indicates this fact in the registration application submitted within 10 working days.

Reduction of the registration deadline
The deadline for filing an application for registration is reduced from the original 15 days to 10 working days after the turnover is exceeded.

Other rules

- If a taxable person exceeds the threshold of CZK 2,000,000 but does not apply for immediate registration and subsequently exceeds CZK 2,536,500 by the end of the year, a new registration application must be submitted.
- The rules for registration are also specified in more detail for entities that provide only those supplies for which they are not entitled to a tax deduction or for cases of renewal of registration.
- The option of voluntary VAT registration remains.

Transitional provisions
The new rules apply from 1 January 2025. If the turnover overrun still occurs in 2024, the existing rules will apply.

Not sure how to register for VAT? We will be happy to help you with the whole process. Do not hesitate to contact us at any time!