Entrepreneurs are included in the register of VAT payers in two cases:
- voluntarily (if the company’s turnover is less than 1 million Czech korunas per year, but, at the same time, it is economically justified to obtain this status)
- forced (upon reaching the minimum turnover of 1 million Czech korunas within the next 12 months)
What about the Identified Person (individual)?
A company or an individual entrepreneur is obliged to register as an identified person in the following cases:
- Purchase of goods in another EU Member State with a total value that exceeds CZK 326,000 (excluding any product subject to consumption tax).
- Receiving services in the Czech Republic from entrepreneurs from another country. For example, the services of companies like Facebook, Google, Uber, Wolt, Bolt, Airbnb.
- Provision of a service in another EU country