Amendment to the VAT Act: VAT obligation arises if exceeding 2 million turnover per calendar year
28 August 2024
From 1 January 2025 onwards, the calculation of turnover of companies for mandatory VAT registration will be modified. The two-million limit remains, but instead of twelve immediately preceding and consecutive calendar months, the amount of turnover will be determined per calendar year. Thus, if an entrepreneur or a company has a turnover of more than CZK 2 million in a given year, it will be subject to VAT from the beginning of the following year.
However, the situation is different if the turnover exceeds CZK 2,536,500, which corresponds to the common EU amount of EUR 100,000. At that point, the entities become taxable the very next day.
Amendment to the VAT Act: VAT obligation arises if exceeding 2 million turnover per calendar year
28 August 2024
From 1 January 2025 onwards, the calculation of turnover of companies for mandatory VAT registration will be modified. The two-million limit remains, but instead of twelve immediately preceding and consecutive calendar months, the amount of turnover will be determined per calendar year. Thus, if an entrepreneur or a company has a turnover of more than CZK 2 million in a given year, it will be subject to VAT from the beginning of the following year.
However, the situation is different if the turnover exceeds CZK 2,536,500, which corresponds to the common EU amount of EUR 100,000. At that point, the entities become taxable the very next day.
