Overview

Companies established outside the European Union (EU) that register for VAT in the Czech Republic are subject to specific representation and communication requirements.

From 1 January 2025, a foreign person established outside the EU that is registered for Czech VAT is required to appoint an authorised representative for the service of documents and provide the Czech tax authority with an email address.

This requirement helps ensure that the Czech tax authority can communicate effectively with businesses that do not have an establishment within the EU.

⚠️ Important: If a business is required to have an authorised representative for the service of documents but does not have one appointed, a penalty of CZK 1,000 for each day without the required representative may be imposed.

This article explains what the requirement means and what non-EU businesses should consider when registering for VAT in the Czech Republic.

🌍 Who Does This Requirement Apply To?

The requirement applies to foreign persons that:

• Are established outside the European Union
• Are registered for VAT in the Czech Republic
• Do not have the relevant establishment within the EU

These businesses must appoint an authorised representative for the service of documents.

⚠️ This should not be confused with automatically requiring a fiscal representative who becomes jointly liable for all of the company's VAT obligations.

The specific Czech requirement concerns ensuring that official tax authority documents can be properly served to the foreign business.

📬 What Is a Representative for Service of Documents?

The representative acts as an authorised recipient for documents from the Czech tax authority.

This provides the tax authority with an appropriate point of contact for official communications relating to the business's Czech VAT obligations.

For non-EU businesses, appointing the required representative helps ensure that important tax authority correspondence is received and can be dealt with promptly.

📧 Email Address Requirement

In addition to appointing an authorised representative for service of documents, the foreign business must provide the Czech tax authority with an email address.

It is important that the contact information provided remains accurate and up to date.

Changes affecting the business's contact or representation details should therefore be communicated promptly.

⚠️ What Happens If You Do Not Appoint a Representative?

Where an authorised representative for the service of documents is required, it is important that the appointment is made and remains in place.

A penalty of CZK 1,000 may be imposed for each day that the business does not have the required authorised representative.

This means that the penalty can increase quickly if the requirement is not addressed.

Failure to comply with the representation or communication requirements can also lead to:

• 💸 CZK 1,000 daily penalties for not having the required representative
• 📩 Important tax authority correspondence being missed
• ⏳ Delays in dealing with VAT matters
• 🔎 Additional enquiries from the Czech tax authority
• ⚠️ Other compliance issues

For this reason, businesses should notify hellotax promptly of any changes that could affect their representation arrangements.

🤝 How hellotax Can Support You

hellotax can help you understand the requirements applying to your Czech VAT registration.

Where applicable, we can:

• Explain the representation requirements
• Identify information or documentation required
• Support the appropriate registration process
• Assist with tax authority communications
• Help ensure relevant information is correctly maintained

The exact requirements may depend on your company's establishment and individual circumstances.

👉 If anything changes regarding your company's establishment, contact details or representation arrangements, inform your hellotax Account Manager as soon as possible.

🔑 Key Takeaways

🇨🇿 Non-EU businesses registered for Czech VAT are subject to specific representation requirements

📬 An authorised representative for service of documents is required where the rules apply

📧 An email address must also be provided to the Czech tax authority

💸 A penalty of CZK 1,000 may be imposed for each day the required authorised representative is not in place

⚠️ This requirement should not automatically be confused with fiscal representation involving joint VAT liability

📩 Always forward Czech tax authority communications to hellotax promptly

💬 If you are unsure whether the representation requirement applies to your business, or if your representation details have changed, contact your hellotax Account Manager for support.