From 1 January 2026, paragraph 83a of the Czech VAT Act1 introduces a new refund mechanism.
Objective: to facilitate VAT refund access for companies established outside the European Union by removing a major constraint.
A major development: end of the reciprocity condition
Until now, non-EU companies could only recover Czech VAT if their country applied a principle of reciprocity. The countries currently recognised are as follows:
- United Kingdom
- Switzerland
- Norway
- Bosnia and Herzegovina
Which companies are affected by this measure?
Paragraph 83a applies only to companies that meet all of the following conditions:
- Company not established in the EU
- Not registered for VAT in the Czech Republic
- Carrying out certain specific transactions in the Czech Republic
Which transactions are covered by the new mechanism?
The scheme covers the following situations:
| Type of transaction | Description |
|---|---|
| Intra-Community acquisition | Purchase of goods from another Member State to the Czech Republic |
| Import | Import of goods from a third country to the Czech Republic |
| Use of goods | Use for a taxable transaction in the Czech Republic subject to the reverse charge mechanism (VAT payable by the customer) |
How does the Czech VAT refund regime change before and after 2026?
| Criteria | Before 2026 | After 2026 (paragraph 83a) |
|---|---|---|
| VAT on import / acquisition | VAT due | VAT due |
| VAT recovery | ❌ Not possible without reciprocity | ✅ Possible in all cases |
| Reciprocity condition | ❌ Mandatory | ✅ Removed |
| Eligible countries | ❌ Limited: United Kingdom, Switzerland, Norway, Bosnia and Herzegovina | ✅ All non-EU countries |
| Czech VAT registration | ❌ Often required to recover VAT | ✅ Not required |
| VAT deduction | ❌ Refused if no reciprocity | ✅ Allowed |
| Financial impact | ❌ Non-recoverable tax cost | ✅ Recoverable VAT |
| Administrative burden | ⚠️ High | ✅ Reduced |
| Suitable for one-off transactions | ❌ Poorly suited | ✅ Yes |
What are the deadlines for submitting a refund claim?
Unlike standard claims under the 13th Directive, the 30 June deadline of the following year does not apply. The claim must be submitted according to the specific timetable set out in paragraph 83a:
| Stage | Deadline |
|---|---|
| Start of the period | 1st day of the 2nd month following the quarter of the taxable transaction |
| End of the period | 31 December of the year following the import or acquisition |
What documents must be provided?
The refund claim must be accompanied by copies of the relevant tax documents proving that the VAT has been correctly declared or paid and that the legal conditions are met, such as:
- proof of import or intra-Community acquisition
- the invoice for the taxable transaction carried out in Czechia
A more efficient scheme for businesses
This new mechanism allows:
- a reduction in administrative burden;
- improved cash flow;
- smoother management of VAT obligations;
- better suitability for one-off transactions or projects.
Need support with VAT in Czechia?
At ASD Group, we help you secure and optimise your Czech VAT management, even in the most complex situations.
Source:
- zakonyprolidi.cz (in Czech) ↩︎
Noémie Almot
Community Manager & Copywriter
Noémie is a specialised content writer at ASD Group. She creates and manages blog articles as well as news updates on our websites, with a focus on VAT, international taxes, customs operations, social regulations, and international trade. With her clear and educational writing style, she makes complex and technical topics easily understandable and relevant for businesses.
