Prague
- Tourist
Information - Taxes
The basic rate of tax is 19 per cent; the reduced rate is 5 per
cent. Most goods and services are subject to the basic tax rate.
The reduced tax rate applies, for example, to food, medicaments,
printed matters, regular personal public transport, funeral services,
water rates and sewage charges, cultural activities, accommodation
services, building work for housing purpose and provision of heating.
Exported goods
are exempt from value added tax and the exporter is entitled to
reclaim the tax on entry. Financial services are also exempt from
VAT. Persons whose annual turnover exceeds CZK 1 million are subject
to VAT registration. The tax is paid monthly or quarterly, depending
on the turnover of the taxpayer.
A substantial
change is also the taxation of imports from EU member states, when
VAT is not paid on importation, but it is included in the tax return
for the relevant period.
V.A.T.
Refund
Foreign visitors
to the Czech Republic can apply for value added tax (VAT) reimbursement
when leaving the country. The minimum price of a single item to
be refunded is 2,000 CZK and visitors can ask for refunds of all
purchases up to 30 days prior to their departure from the country.
Foreigners must claim the refund no later than 3 months after the
day of purchase. The Vat refund form, which must be validated by
Czech Customs authorities upon departure, can be obtained at Financial
Offices, Customs Offices, and the retailers. Refunds must be claimed
with the same retailer (1) in person or (2) through a specialized
collecting agency (such as VAT MAX).
