Main information
If you meet the conditions set out in the Value Added Tax Act, the representative member may, with your consent, submit an application for your accession to a VAT registered group.
To become a member of the group you must
- be a member of a capital or personnel related group,
- have a registered office or place of business in the country.
The tax administrator will cancel the taxpayer's registration on the day preceding the date they become a member of the group.
This applies to you if
You are a member of a capital or personnel related group within the meaning of the Value Added Tax Act, you have your registered office or place of business in the Czech Republic and the conditions for your accession to the group under this Act are met.
When to use this service
The service can be used at any time.
In the event of a transformation of a commercial company, when the assets of the dissolving or divided member of the group are transferred or being transferred, the obligation to file an application for registration arises within 15 days from the date of registration of the transformation in the Commercial Register.
- The taxpayer will become a member of the group from 1 January of the following calendar year if the group submits, with the taxpayer's consent, an application for the accession of the taxpayer to the group by 31 October of the current calendar year at the latest.
- A person who is not a taxpayer will, if the conditions set out in the Value Added Tax Act are met, become a member of the group from the first day of the second calendar month immediately following the calendar month in which the group submits, with the consent of that person, an application for its accession to the group.
An application to join the group from 1 January of the immediately following calendar year made after 31 October of the current calendar year shall be ineffective.
Service settlement
What you need if you are using this service
None
Where and how to solve this service
None
How much will you pay
None
Additional information
What is the benefit of this service
A reduction of the administrative burden on the joining group member, as it can fulfil its obligations under the Value Added Tax Act jointly through the group once it has successfully joined it.
Appeal options
You may appeal against a negative decision on your accession to the group within 30 days of the date of delivery of the decision.
The appeal must be lodged with the tax office that made the decision on your accession to the group.
Legislation
Sanctions
None
Frequently asked questions
Where can I find more information on group VAT registration?
Detailed information on the legal conditions for group registration for value added tax can be found on the website of the Financial Administration of the Czech Republic in the document Information on group registration.
When am I a personnel or capital-related group?
If the share of the registered capital or voting rights is at least 40%.
As a capital-related group that may form a group, it is considered to be
- a group of an organisational unit of the state and a contributory organisation established by it, or
- a territorial self-government unit and a contributory organisation established by it.
Does a group really have to be a VAT payer in order for me to join it?
Yes, a group is a specific grouping of related persons for the purposes of value added tax, which is granted the status of a separate taxable person, i.e. supplies made between members of the group are not subject to value added tax and the group becomes a sole payer of value added tax.