Changes to the Value Added Tax Act

The amendment to the Value Added Tax Act (hereinafter referred to as the “Amendment”) will come into effect on 1 January 2023. Below you can find summary of the main changes.

Increasing turnover for the payer’s mandatory registration 

The turnover for the mandatory registration of the payer will be increased to CZK 2 million. The turnover will continue to be counted in 12 consecutive calendar months.  

A payer with a turnover of less than CZK 2 million therefore has to decide whether to keep or cancel the registration. These payers will be able to request the cancellation of the registration up to 8 December 2022.

An entrepreneur who exceeds the currently valid turnover for the mandatory registration of a payer, i.e., CZK 1 million, for the first time in November or December 2022 and who does not want to become a payer, does not have to submit an application for registration and does not become a payer by law. Of course, the above applies only if his/her turnover is less than CZK 2 million.  

On the contrary, an entrepreneur who exceeded CZK 1 million in November 2022 and therefore submits an application for registration will have to confirm his/her intention to become a payer to the tax administrator by 15 December 2022.

Changes concerning the control statement

The deadline for responding to a notification to change, add or confirm the information specified in a control statement will be increased from the current 5 working days following the tax office´s request to 17 calendar days from the date of delivery of the request to the data box. Thus, the deadline will start to run regardless of whether the payer picks up the request from the data box or not. The objective of this change is to give the payer more time to respond to the request. The payer simply receives more time by picking up the request from the data box as soon as possible after the date the tax administrator delivers it to the data box. 

In addition, the penalties imposed in connection with the control statement will be reduced. The first penalty for a given calendar year of CZK 10,000, which is sanctioned for the late submission of a control statement following a request from the tax administrator, will be automatically waived.

Fines for breach of the obligations related to the control statement in the amount of CZK 10,000 to CZK 50,000 will be reduced to half for a payer that is:

  • a natural person;
  • a payer with a quarterly taxation period; or
  • a limited liability company with a single member who is a natural person.

If you would like more information about the Amendment, we will be glad if you contact us.


Pavla Polanská, Tax Manager
Kateřina Mikolášová, Tax Senior