The Czech republic as a member state of refund: VAT refunds to taxable persons registered in the other Member State - Information (valid since 1. 1. 2010)
VAT refunds to taxable persons registered in the other Member State – Information
For VAT Refund to taxable persons registered in other Member States is responsible the following institution in conditions of the Czech republic:
The Tax Office for Capital City Prague, the Territorial Office for Prague 1:
Finanční úřad pro hl. m. Prahu
Územní pracoviště pro Prahu 1
112 33, Praha 1
Tel: +420 224 041 111
Fax:+420 224 043 198
Since 1. 1. 2010 to obtain a refund of VAT in the Member State of refund (in CZ), the taxable person not established in the Member State of refund (in CZ) must address an electronic refund application to that Member State (CZ) and submit it to the Member State in which he is established via the electronic portal set up by that Member State. (Council Directive 2008/9/EC, Article 7; Act no.: 235/2004 Coll., on VAT as amended, section 82a and 82b).
In accordance with above mentioned – conditions of submission are determined by the relevant member state of establisment.
The VAT Refund application which is addressed for CZ must:
- be completed in the Czech language (it means next possibly communication)
- include invoices or import documents (in accordance with thresholds mentioned in Article 10 of Council Directive 2008/9/EC)
- be substantiated with statement of the applicant, that he did not make any taxable supply in the Czech Republic during relevant period for refund (it must be the condition within the frame of filling in application in member state of establishment).
- include the amount of VAT claimed in CZK
- an applicant must be registered for VAT purposes in member state of establishment during relevant period for refund (it must be the condition within the frame of filling in application in member state of establishment).
VAT will be refunded according to the Sections 82a and 82b of Act No. 235/2004 Coll., on the Value Added Tax as amended and the amount of the VAT claimed may not be
- less than 400 EURO if the period is less than 1 calendar year, but not less than 3 months, or
- less than 50 EURO if the period is 1 calendar year or less than 3 months, if it is the rest of calendar year.
For conversion of EURO currency into the CZK currency it must be used exchange rate mentioned by the Czech National Bank for the first working day in January of the year for which the application is submitted (section 82a paragraph 9 of Act no.: Act No. 235/2004 Coll., on VAT as amended).
Periods for refund acceptable in CZ conditions (section 82a paragraph 8 of Act No. 235/2004 Coll., on the Value Added Tax as amended):
- at most 1 calendar year and at least 3 calendar months or
- period shorter than 3 calendar months if it is the rest of calendar year.
The application must be submitted by 30 September of the year following that to which application relates.
Term for submission of VAT REFUND Applications with period of refund - 2009 - was prolonged
Tax Payers registered for VAT in member state of establishment who did not apply for VAT REFUND till 30. September 2010 for VAT paid in amounts of goods and services in another member state in 2009, they do not lose the claim.
The new COUNCIL DIRECTIVE 2010/66/EU has come into force at the EU level. This directive prolongs term for submission of VAT REFUND Applications with period of refund – 2009. Previous term – till 30. September 2010 - is prolonged to 31. March 2011 after the new directive becomes effective.
Other rules of the new VAT REFUND procedure from another member state valid since 1. 1. 2010, which are determined in CZ conditions by the Act no.: 235/2004 Coll., on VAT as amended (§ 82, § 82a and § 82b) remain without changes.