Increasing the turnover limit to CZK 2 million for mandatory registration for VAT

The Ministry of Finance has submitted its amendment to the VAT Act to the comment procedure. The bill should increase the yearly turnover for mandatory registration for VAT to CZK 2 million (EUR 85,000) and it should become effective from 1 January 2023. The current limit of CZK 1 million has been in effect, without any changes, since 2004. Brussels will allow member states to increase the limit from 2025. But the Czech Republic has applied for permission to increase at an earlier date the limit to CZK 2 million for mandatory registration for VAT and the EU has agreed to it and approved the Czech application. The amendment also enables a company to terminate its registration for VAT if its annual turnover does not reach CZK 2 million.