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The Czech republic as a member state of establishment: VAT refunds to Taxable Persons not established in the Member State of Refund but established in another Member State - information about process (valid since 1. 1. 2010)

Own decision process on VAT REFUND will be always according to the rules determined by a member state of refund.
Basic procedural lines are determined for all member states uniformly:

1. Who?

The person entitled for VAT REFUND according to the article 82 of Act no. 235/2004 Coll., on value added tax, as amended (next only „Act on VAT“), is:
Applicant, who during the VAT REFUND period:

  • is registered for VAT (in accordance with § 94 of Act on VAT),
  • has establishment, place of business or other business premises in the Czech Republic (member state of establishment),
  • does not have any establishment, place of business or other business premises in member state of refund and it in accordance with the rules determined by this member state
  • did not accomplish only fulfilments exempted from VAT without demand on deduction of VAT according to article 51 of Act on VAT.

Tax Payer (Applicant) can be represented within the frame of VAT REFUND proces:

Representation (in condition of the Czech Republic as a member state of establishment) is determined by the article 25 and 27 of the Act no. 280/2009 Coll., Tax Code as amended. A representative must be recorded by the relevant local Tax Office of an applicant based on the power of attorney - general, or special – only for the whole purposes of VAT REFUND in accordance with article 82 of Act on VAT. This is necessary also for access into the application (see below). Access into the application will be possible also for more representatives in case of more tax procedures (requests to more member states of refund). Nevertheless in case of more representatives – they must be absolved from secrecy mutually – via power of attorney of an applicant. Communication with the Czech Tax Offices is possible only in our official language – the Czech (article 76 of the Act no. 280/2009 Coll., Tax Code as amended).

2. What?

It is possible to apply for a refund of VAT paid in price of goods or service acquired by an applicant in another member state. VAT REFUND amount is considered similarly as demand on deduction of VAT according to the article 72 of Act on VAT. If an applicant is obliged to reduce deduction of VAT, he must act according to the article 72 sections 4 and 5 of Act on VAT and so he has right to deduction of VAT only in proportional amount. In this case an applicant must mention the application of „Pro-rata rate“ for proportional demand on VAT REFUND and mention the known value at present of this Pro-rata rate in a request of VAT REFUND.

3. How?

Basic submission of:

  • Request of VAT REFUND, or
  • Pro-rata rate Adjustment

these submissions are possible only via electronic portal of member state of establishment. In conditions of the Czech Republic (i.e. in case of VAT REFUND request of Czech Tax Payer concerning the VAT – paid for example in Poland) it will be possible to submit a request or Pro-rata rate Adjustment via Tax Portal of the Czech Tax Administration, administrated by the General Financial Directorate, in Application: „Vracení DPH v rámci EU“ (next only „application“).
Application is available on the portal – here.

Access into the application:

For access into the application it is necessary to submit electronically the „Request for access into the application“ with the guaranteed electronic signature according to the Act no. 227/2000 Coll., on electronic signature as amended. List of the accredited providers of certification services is mentioned on website of the Ministry of Interior CZ: http://www.mvcr.cz/ for more information about the electronic signature which is acceptable for applications on web-portal of the Czech Tax Administration see here.
Request for access is submitted to the relevant local Tax Administrator of an applicant via Tax Portal of the Czech Tax Administration in application: „Elektronická podání“ (Aplikace EPO). Form is available – here (DPH - Žádost o přidělení přístupu do Aplikace pro vracení daně z přidané hodnoty plátcům v jiných členských státech).
Request will be decided by a Tax Administrator within the frame of 15 working days.
An applicant/his representative will be noticed about the result via mobile telephone (the Czech operators). In case of negative result also the official decision will be sent to an applicant. In opposite case after expiration of the determined time (or earlier) an applicant will have (or his representative) opened access into the application. Access into the application will be opened for person submitted the request for access and based on the guaranteed electronic signature.

Application:

Persons, whom the access has been assigned to by local tax administrator, have equivalent access into the whole application after log in. It means that all activities which can do here an applicant can be performed also by his representative and for all member states without restriction (i.e.: submission of request for VAT REFUND, submission of Pro-rata rate Adjustment; mention of contact data, including bank account; access into list of submitted requests; take over and see list of delivered documents issued by member state of refund and so on). Access into the application is not possible to reduce only for determined member states.

After enter into the application an applicant/his representative can choose from links when: In link: „Všeobecné informace“ an applicant finds the detailed information concerning the individual parts of the application, rules for filling in and activities regarding submission, links to the relevant legislation and basic preferences of member states of refund. Registration data of an applicant/his representative is filled in automatically in submissions in such state which is known currently at Tax Office of an applicant, without possibility to correct it in the application. If this registration data is not in accordance with actual state, an applicant/his representative must contact local Tax Office and ensure correction here. Contacts of the Tax Offices – here. In a request for VAT REFUND is possible to enclose an attachment up to 5 MB including „zip“. and only in formats: .pdf, .jpg, .tif.

4. When? - Terms

Request for VAT REFUND must be submitted in member state of establishment till 30. September of the calendar year following after period of refund. New rules for VAT REFUND is concerning all requests submitted after 31. 12. 2009, these rules are also valid for requests with period of refund in 2009, but submitted after 1. 1. 2010 and next.

More information concerning the VAT REFUND process according to the article 82 of the Act on VAT you can find here.

Who can contact in case of questions concerning the VAT REFUND process of a submitted request?

Request is submitted for tax administration of the member state of refund. There is list of the contact points for VAT REFUND process in individual member states of refund you can find here.

Term for submission of VAT REFUND Applications with period of refund – 2009 – will be prolonged

Attachments

  • The Czech Republic as a member state of establishment: VAT refunds to Taxable Persons not established in the Member State of Refund but established in another Member State - information about process (valid since 1. 1. 2010)

  • Preferences of member states of refund (mentioned by individual member states and published by European Commission)