Calendar-year turnover

From 1.1.2025, VAT turnover will be calculated for the calendar year (always 1.1. to 31.12.). Other rules remain unchanged (see an earlier blog article).

Two turnover thresholds

The biggest change is the introduction of two turnover thresholds. The Czech threshold remains CZK 2 million, with a second EU threshold of CZK 2,536,500 (equivalent to EUR 100,000) added. 

To keep us from getting bored, different rules apply when each threshold is exceeded:

Turnover When must I register? When do I become a VAT payer?
Up to and including CZK 1,999,999 – –
CZK 2,000,000–2,536,499 Within 10 working days of exceeding the threshold. By law, only from 1.1. of the following year; voluntarily, also from the next day.
CZK 2,536,500 and above Within 10 working days of exceeding the threshold. From the day after exceeding the threshold.

Example: Business owner Pavel invoices for his August services and finds that, as of 31.8.2025, he has exceeded the CZK 2 million VAT-registration threshold. His turnover is CZK 2,100,000. He must apply to the tax office within 10 working days. He will become a VAT payer from 1.1.2026 or, if he wishes, as early as 1.9.2025.

Example: Business owner Jan invoiced for his July services and found that, as of 31.7.2025, he had exceeded the CZK 2 million VAT-registration threshold. He applied within 10 working days and was due to become a VAT payer from 1.1.2026. As Jan's business continued to do well, he also exceeded the second threshold (CZK 2,536,500) as of 30.9.2025. He must submit another application to the tax office within 10 days and becomes a VAT payer as early as 1.10.2025. 

A final tip

If, for example, you already expect halfway through the year to exceed both thresholds by 31.12., your best option is to register voluntarily straight away. The tax office can take up to 30 days to register you voluntarily, and you become a VAT payer the day after receiving the registration decision in your data box (for example, opening the decision on 1.9.2025 makes you a VAT payer from 2.9.2025). Voluntary registration thus gives you, your suppliers and your customers time to prepare calmly for the change. However, the entire voluntary-registration process must be completed before you exceed turnover of CZK 2,536,500 :-). 

Still feeling lost? I will be happy to go through everything again with you in a consultation :-).