VAT

VAT or value added tax, where value added is the difference between the input and the output. VAT is an indirect tax, i.e. it is not paid as a separate amount but is included directly in the price of the product or service. Almost all products and services are subject to value added tax and are paid by the end consumer. VAT is compulsorily paid by those business entities whose turnover in the last 12 months exceeded CZK 2 million. Entrepreneurs can also register for VAT voluntarily. The VAT payer is obliged to file a monthly or quarterly tax return and pay the tax liability.