Obrat roste k 1 milionu Kč: co vás čeká jako plátce DPH

Last year, your business reached a milestone – you crossed the threshold of 1 million Kč in revenue. Congratulations! However, this achievement also comes with a new set of responsibilities, especially when it comes to value-added tax (VAT) or DPH in Czech. As a VAT payer, there are several key things you need to be aware of now that your turnover has exceeded this threshold.

First and foremost, once your revenue reaches 1 million Kč, you are now required to register for VAT with the Czech tax authorities. This means that you will need to obtain a VAT identification number and start charging VAT on your sales. The standard rate of VAT in the Czech Republic is currently 21%, although there are reduced rates for certain goods and services.

In addition to charging VAT on your sales, you will also need to start keeping detailed records of your transactions and filing regular VAT returns with the tax authorities. This means maintaining accurate accounting records, including invoices, receipts, and other documents related to your business activities. Failure to do so can result in penalties and fines from the tax authorities.

Another important consideration when it comes to VAT is the issue of input and output tax. As a VAT-registered business, you will be able to reclaim the VAT you have paid on your purchases (input tax) against the VAT you have collected on your sales (output tax). This can have a significant impact on your cash flow, so it is important to understand how to correctly account for VAT in your business.

Finally, reaching the 1 million Kč threshold for VAT registration may also trigger other tax obligations, such as the requirement to submit additional reports or comply with special rules for cross-border transactions. It is important to stay informed about these requirements and seek advice from a tax professional if you are unsure about how to comply.

In conclusion, reaching a turnover of 1 million Kč is a significant achievement for your business, but it also brings new responsibilities when it comes to VAT. By understanding the rules and regulations surrounding VAT and staying compliant with your tax obligations, you can ensure the continued success of your business as it grows.