Information on return of value added tax to persons liable to tax residing in the United Kingdom of Great Britain and Northern Ireland after the transition period has ended.
- Grant Thornton Czech Republic
On 18 May 2021, the General Financial Directorate published the Information with file no. 29374/21/7100-20116-010212 on return of VAT to persons liable to tax residing in the United Kingdom of Great Britain and Northern Ireland (hereinafter “the United Kingdom”) after the transition period has ended.
According to this information, even after the United Kingdom has left the EU on 1 January 2021, the procedure for return of VAT between the Czech Republic and the United Kingdom is according to the principle of mutuality, that is provision of comparable advantages.
Since the principle of mutuality is fulfilled (tax is returned by both countries), a person liable to tax with registered office or a place of residence on the territory of the United Kingdom, which does not have business premises on the territory of the EU, may from 1 January 2021 request return of VAT for received taxable performance with a place of performance in the Czech Republic (article 83 of the VAT act).
The request for return is submitted to the Financial Office for the capital city of Prague using a prescribed form only in the Czech language and it cannot be submitted electronically. You can find more detailed information in the instructions for filling in the request. The request for return of tax for the calendar year can be submitted by 30 June of the following calendar year at the latest, otherwise the entitlement lapses.