Czech VAT Rules 2025: New Agent Requirements for Foreign Taxable Persons

July 1, 2025

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The Czech Financial Administration has released a notice for foreign taxable persons, reminding them of the compliance requirements that took effect on January 1, 2025. The notice highlighted the key changes to the VAT Law, new obligations that foreign VAT-registered taxable persons must fulfill, as well as penalties defined for non-compliance with enforced rules and regulations.

Impact on Foreign Taxable Persons

Under the amended VAT Law, foreign taxable persons registering for VAT in the Czech Republic are required to appoint a tax representative or authorized agent and provide an email address for communication with the Financial Administration. The only exception to these rules applies to VAT-registered taxable persons who have a data mailbox opened in the country, who do not need to appoint an agent.

The notice further provides information on who can be an authorized representative or agent, underlining that it can be an individual or legal entity that has an accessible data mailbox. In cases where the taxable person changes their agent due to the expiration of authorization or if the taxable person's data box becomes inaccessible, the change must be made within 30 days.

Foreign taxable persons that fail to meet these requirements and obligations may be subject to a CZK 1,000 (around EUR 40) penalty for each day of failure. As stated by the Financial Administration, due to ambiguities in the interpretation of the VAT amendments, the transitional period has been extended to September 30, 2025.

Therefore, powers of attorney already granted to representatives who do not meet the updated criteria will remain fully valid until the defined date. During this period, the Financial Administration will not enforce penalties or other measures for non-compliance with these regulations.

Conclusion

The primary purpose of the new requirements is to enhance communication between foreign taxable persons and the Financial Administration. Although the defined penalties are not high, they are calculated daily, which may ultimately lead to a significant financial penalty for those who do not comply. Nevertheless, those who did not meet the requirements still have enough time to appoint a representative or agent and avoid any inconvenience.

Source: Financial Administration

What are the new VAT compliance requirements in the Czech Republic for 2025?

From January 1, 2025, foreign taxable persons registered for VAT in the Czech Republic must appoint a tax representative or agent and provide an email address for communication with the Financial Administration.

Who is exempt from appointing a tax agent under the new Czech VAT rules?

Foreign taxable persons who have an open and accessible data mailbox in the Czech Republic are not required to appoint an authorized agent.

What qualifies someone to be a tax agent or representative?

The authorized agent can be an individual or a legal entity, as long as they have an accessible data mailbox within the Czech Republic.

What happens if a foreign taxable person does not appoint an agent?

Failing to meet the agent appointment requirement can result in a penalty of CZK 1,000 (about EUR 40) for each day of non-compliance.

Is there a grace period for complying with the new rules?

Yes, due to interpretative ambiguities, a transitional period extends until September 30, 2025. During this time, penalties will not be enforced for non-compliance.

What should foreign VAT payers do if their agent's authorization expires?

If the authorization expires or the data mailbox becomes inaccessible, the foreign taxable person must appoint a new agent within 30 days.

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