Mandatory Representative for Non-EU Businesses in the Czech Republic

The requirement to designate a VAT representative in the Czech Republic, originally set to take effect in 2024, has been postponed to January 2025.

Exemption for Businesses with a Data Mailbox

Starting in 2025, a foreign business without a VAT establishment in the EU that registers for VAT in the Czech Republic will be obligated to appoint a “delivery agent” (‘zmocněnec pro doručování’) if they do not have a data mailbox. The agent must be appointed no later than the deadline for VAT registration or on the date of submission in the case of voluntary registration. The agent will represent the non-EU company in communications with Czech tax authorities and must have a data mailbox.

Appointing a Representative for Voluntary VAT Registration

Non-EU businesses are not required to appoint an agent if they already have a data mailbox. The agent should be named in the VAT registration application. For mandatory VAT registration, failure to indicate the agent does not result in the rejection of the registration. However, in voluntary registration cases, failure to appoint an agent will prevent VAT registration.

Key Deadlines for Agent Appointment

Foreign entities without a data mailbox, but already VAT-registered in the Czech Republic as of January 1, 2025, must appoint an agent with the required data mailbox by February 28, 2025. Foreign businesses VAT-registered by January 1, 2025, must notify the tax authorities of their email address by February 28, 2025, using a special form available between January 1 and February 28, 2025. The agent will take on all rights and obligations regarding the receipt of documents from tax authorities concerning VAT (according to VAT law and the tax code) on behalf of the represented entity.

Foreign companies that fail to designate an agent or appoint one after the deadline will face a fine of CZK 1,000 for each day of non-compliance.