FAQ Czech VAT for 93rd IETF

The following information is from BC&A, tax agent and representative for the Internet Society.

1.  Why am I paying a VAT on the Meeting Registration Fee?

You are paying a Value Added Tax (VAT) on the registration fee because it is required by the laws and regulations of the EU and its member states. They establish that VAT must be paid on the fees in the country where the meeting is held. For this meeting the Czech VAT has been added to the Registration Fee.

2.  Can the VAT be recovered?

Possibly. Only companies from the European Union and from Switzerland, Norway and Moldavia can claim back the Czech VAT. To recover the VAT you must provide the details of your company - name, address, VAT number or Tax ID - for all expense invoices and submit all original documentation to your company for its processing. When you register, there is field where you can enter the VAT number, which will then appear on your invoice.

Pay attention that the VAT refund on certain expenses like travel expenses, accommodation, meals or goods and services for personal consumption are not accepted by the Czech Tax Administration.

3.  What process should companies follow to recover the VAT?

  a.  EU Companies

    EU companies must contact the Tax Administration of their own country for instructions regarding the conditions and process to follow for reclaiming the Czech VAT. There are also minimum VAT amounts that must be met.

For the refund applications for one to three quarters by an EU company the minimum amount is EUR 400. If the refund application relates to a refund period of a calendar year or the remainder of a calendar year, the amount of VAT may not be less than EUR 50. For conversion of EURO currency into the CZK currency it must be used the exchange rate mentioned by the Czech National Bank for the first working day in January of the year for which the application is submitted. Please note that these amounts refer to ALL the VAT from the expenses incurred FROM ALL ITS EMPLOYEES in the Czech Republic for this meeting and any other business-related VAT incurred in the Czech Republic.

  b.  Non-European Companies

    The Non-European companies must send the VAT refund application directly to Finanční úřad pro Prahu 1 (Local Tax Office for Prague 1) at the address below and make sure their application is received at the latest by 30 June 2016.  There are also minimum VAT amounts that must be met.

Finanční úřad pro Prahu 1 (Local Tax Office for Prague 1)

Štěpánská 28

112 33 Praha 1

Czech Republic

The VAT refund must be at least CZK 7,000, unless the refund period is the calendar year or the last period of the calendar year. The refund for these refund periods must be at least CZK 1,000.  Please note that these amounts refer to ALL the VAT from the expenses incurred FROM ALL ITS EMPLOYEES in the Czech Republic for this meeting and any other business-related VAT incurred in the Czech Republic.

You can find here the form that must be completed and presented with the application. Note this form is published only in Czech (and is only to be used by non-European companies).

The application for VAT refund must be supported by the relevant invoices and a Certification that the applicant is a taxable person registered for VAT or similar taxes issued by the tax authority from the country of his establishment.