Eligibility for refund
An EU business registered for VAT in another EU member state is entitled to recover Czech VAT if the following conditions are satisfied:
- The claimant has not been registered or liable to be registered for VAT in the Czech Republic in the relevant period;
- It does not have residence, its seat or a fixed establishment in the Czech Republic;
- The claimant has not performed any taxable supplies in the Czech Republic in the relevant period, except for:
- Certain tax-exempt supplies (cross-border transport from/to non-EU countries); and
- Supplies for which the reverse charge mechanism applies.
VAT cannot be recovered on business representation and entertainment expenses.
Only an electronic copy of invoices for which the taxable basis of the invoice or import documents equals or exceeds the threshold of EUR 1,000 must be submitted with each application (EUR 250 for invoices relating to fuel costs).
The Czech authorities can request original invoices or additional documents/information.
If the application relates to a period of less than one calendar year but not less than three months, the amount of VAT for which the application is made may not be less than EUR 400; if the application relates to a period of a calendar year or the remainder
of a calendar year shorter than three months, the VAT amount may not be less than EUR 50.
The application must cover a period of not less than three consecutive calendar months (e.g. from 1 January to 31 March) in one calendar year and not more than one calendar year, unless the period represents the remainder of a calendar year (e.g. from 1 November to 31 December). The application must be submitted to the Czech tax authorities by 30 September of the calendar year following the refund period. The deadline will not be extended.
The application also may relate to invoices or import documents not covered by previous applications with respect to transactions carried out during that calendar year.
If a refund is granted, it will be paid in CZK within 10 business days after the relevant period to the bank account number provided to the authorities in the refund application. A Czech bank account is not required.
The Czech tax authorities will be liable for late payment interest if the refund is not processed in a timely manner. If one of the submitted invoices is not correct or not in compliance with the formal requirements, only that part of the refund claim will be rejected (the entire claim will not be rejected).
If the refund is not granted, the grounds for rejection must be stated. The claimant can appeal the decision to the Czech tax authorities within 30 days from the day following the day the decision is delivered.