Registration in the scheme for small enterprises (SMEs)

Main information

If you meet the statutory conditions and wish to use the cross-border value added tax (VAT) scheme for small enterprises (SMEs), which allows small enterprises (selected taxable persons) to supply goods or provide services exempt from value added tax in a Member State other than the Member State of establishment, you must register for this scheme first by submitting an Application for registration in the scheme for small enterprises (SMEs).

Conditions for using the cross-border scheme for small enterprises (SMEs):

• the turnover achieved in the European Union must not exceed EUR 100 000 in either the current or the previous calendar year;
• the turnover achieved in the Member State in which you, as a taxable person, wish to use the cross-border scheme for small enterprises must not exceed the applicable turnover threshold for the period determined by that Member State; each state determines the period and turnover threshold through its national regulations;
• fulfilling any additional conditions laid down by the Member State of exemption (for example a condition relating to the amount of domestic turnover for the year before the previous calendar year or for defined ‘sectors’).

The tax administrator will subsequently decide on your registration and assign you a tax identification number for the scheme for small enterprises for another Member State (TIN).

An explanation of the terms ‘Member State of establishment’ and ‘Member State of exemption’ is provided below in Frequently asked questions.

Information on the scheme for small enterprises and on Member States that require turnover to be stated by ‘sector’ is available on the website of the relevant Member State or on the European Union's website.

You may also register in the scheme for small enterprises (SMEs) if:

• you are a VAT payer in Czechia;
• you are an identified person;
• you are registered in the European Union scheme under the One Stop Shop (OSS) special scheme.

You cannot use the scheme for small enterprises (SME) if:

• you are a VAT group;
• you are a member of a VAT group;

• you are a person registered for the import scheme under the One Stop Shop special scheme (for more detailed information, see Registration in the OSS Scheme).

This applies to you if

• you have your registered office or place of residence in Czechia;
• your turnover in the European Union did not exceed EUR 100 000 in either the current or the previous calendar year;
• your turnover in the Member State of exemption did not exceed the applicable turnover threshold for the specified period, as determined by that Member State;
• you fulfilled any additional conditions laid down by the Member State of exemption; and

and you wish to use the cross-border scheme for small enterprises (SMEs).

When to use this service

You can use this service at any time.

Vyřízení služby - elektronicky

What you need if you are using this service

The Application for registration in the scheme for small enterprises (SMEs) form, which is available on the MOJE daně portal.

In the Application, you must state in particular:

• your business name/name and address of your registered office;
• all fields of economic activity that you carry out as part of your economic activity;
• the Member States of the European Union in which the VAT exemption under the cross-border scheme for small enterprises may be used and for which you request registration in this scheme;
• data on turnover achieved in each Member State of the European Union, including Czechia and including Member States in which you do not wish to register in the cross-border scheme for small enterprises, for the current and previous year; if you made no supplies in the relevant Member State and year, you must state the value ‘0’; and
• for Member States in which you wish to use the cross-border scheme for small enterprises and which require it, turnover data for the year before the previous year or for defined ‘sectors’.

Where and how to solve this service

The Application for registration in the scheme for small enterprises (SMEs) can be submitted electronically via:

• the Online Tax Office (DIS+) app available on the MOJE daně portal; or
• the Electronic Submissions for the Financial Administration (EPO) app.

The Application for registration in the scheme for small enterprises (SMEs) cannot be submitted in a manner requiring subsequent confirmation, i.e. using the e-form ‘Confirmation of a submission made by data message not bearing a recognised electronic signature’.

How much will you pay

None

Additional information

What is the benefit of this service

If registration in the scheme for small enterprises (SMEs) for another Member State is successful, you may supply goods or provide services exempt from value added tax in a Member State other than the Member State of establishment.

Appeal options

If the tax administrator of the Member State of exemption informs the domestic tax administrator (Financial Administration of the Czech Republic) that you do not meet the conditions for exemption in that state, the domestic tax administrator will reject registration for that Member State of exemption.

The tax administrator of the Member State of establishment is bound in its decision-making by the position of the tax administrator of the Member State of exemption.

You may exercise remedies directly in the Member State of exemption in accordance with its applicable legal regulations against a negative decision on your registration in the cross-border scheme for small enterprises issued by the tax administrator of the Member State of exemption.

You may lodge an appeal against a negative decision on your registration in the cross-border scheme for small enterprises for another Member State issued by the domestic tax administrator without cooperation with the tax administrator of the Member State of exemption within 30 days of receipt of the decision. The appeal must be lodged with the tax office that issued the decision on the registration.

The domestic tax administrator will always issue you with a negative decision of the tax administrator of the Member State of exemption if that decision is available to the domestic tax administrator.

The domestic tax administrator is not authorised to process remedies against a decision of the tax administrator of the Member State of exemption, nor does it forward remedies to the tax administrator of the Member State of exemption. 

Frequently asked questions

Where can I find the guide to the cross-border VAT scheme for small enterprises in the EU?

The guide to the cross-border VAT scheme for small enterprises in the EU is available on the European Commission website.

Where can I find more detailed information on the cross-border VAT scheme for small enterprises in the EU?

More detailed information on the cross-border VAT scheme for small enterprises in the EU is available on the website of the Financial Administration of the Czech Republic.

What is meant by the term ‘Member State of establishment’?

The term ‘Member State of establishment’ means the European Union Member State in which the small enterprise has its registered office or place of residence (in this case, Czechia).

What is meant by the term ‘Member State of exemption’?

The term ‘Member State of exemption’ means any Member State of the European Union other than the Member State of establishment in which the small enterprise is eligible for exemption from value added tax on the supply of goods or provision of services under the scheme for small enterprises, and that the small enterprise designates in the application for registration in the scheme for small enterprises (SMEs) as the Member State of exemption (except for Spain, which has not implemented the scheme for small enterprises).