Main information
As a foreign taxable person who does not have a registered office or place of business in the European Union, you are entitled to a tax refund for taxable supplies with a place of supply in the Czech Republic if you do not carry out supplies in the Czech Republic during the period for which you are claiming the refund other than:
- the import of goods,
- exempt supplies without the right to deduct tax,
- provision of services related to the import of goods and export of goods,
- a supply in respect of which the payer or the identified person for whom the supply is being carried out is liable to declare the tax; or
- selected supplies to which the special OSS scheme applies.
A taxable supply is the supply of goods for consideration, the provision of services for consideration, the acquisition of goods from another EU Member State for consideration and the import of goods with the place of supply in the domestic territory, unless they are exempt from tax.
The tax is refunded on the basis of the principle of reciprocity. The principle is fulfilled if the taxable person resident in the country is refunded value added tax or a similar general consumption tax in the country in which the foreign person claiming the refund is resident, on the basis of an international treaty or other arrangement, and this country is included in the list of countries published by the Ministry of Finance in the Financial Bulletin.
The tax office may require the foreign person to submit a certificate issued by the competent authority of the State in which the person has its registered office stating that value added tax or similar general consumption tax is not levied in that State.
As a foreign person, you can claim a tax refund on goods and services under similar conditions as the taxpayer can claim a deduction.
Tax cannot be refunded on these supplies:
- goods and services provided for personal consumption,
- travel, accommodation and meal expenses of the foreign person,
- goods and services related to the representation of a foreign person,
- telephone fees,
- taxi service.
The tax will be refunded if the amount of the refund is
• at least CZK 7 000 for a period of less than one calendar year but not less than 3 months, or
• at least CZK 1 000 for a period of one calendar year or a period of less than 3 months if it is the remainder of a calendar year.
If you incur a refundable overpayment as a result of a refund assessment, the tax office will refund the overpayment to you without a request within 30 days of the assessment.
The tax is refunded to the account specified in the refund request, either in the Czech Republic or in any other country. If the tax is refunded to an account in another country, the transfer fees are borne by the foreign person.
This applies to you if
You are a taxable person who does not have a registered office or place of business in the European Union and you want to recover value added tax paid on taxable supplies with a place of supply in the Czech Republic.
When to use this service
You can submit a refund request for the relevant calendar year no later than 30 June of the following calendar year.
If the refund is not claimed within this time limit, the claim is extinguished.
The period for claiming the refund must include at least three consecutive calendar months in a calendar year, but not more than one calendar year. The period for claiming the refund may be shorter than three months only if it is for the remainder of the calendar year. A refund request for the remainder of the calendar year may also include purchases of goods or services or imports of goods that were not included in previous requests but relate to the calendar year in question. The application must not include a refund that relates to previous calendar years.
Service settlement
What you need if you are using this service
The form Application for a refund of value added tax for a taxable person not established in the country, which can be printed from the website of the financial administration.
The refund request must be accompanied by:
- tax documents issued by the payer,
- tax documents when importing goods into the country and proof of payment
- a certificate stating that the applicant is a person registered for value added tax or other similar tax in a third country, issued by the competent tax administration authority in the country where the foreign person is registered; this certificate must not be older than 1 year from its issue,
- a written declaration that it has not made any supplies other than the selected supplies during the period for which it is claiming a refund.
Where and how to solve this service
The application for a tax refund can be submitted in person or sent by post to the Tax Office for the Capital City Prague.
How much will you pay
None
Additional information
What is the benefit of this service
Refund of value added tax paid by a foreign person.
Appeal options
The decision to refund tax may be appealed with the Tax Office for the Capital City Prague within 30 days of the delivery of the decision.
Legislation
Sanctions
None
Frequently asked questions
None