Taxation

13. 5. 2014

Self-employed service providers providing cross-border services in the Czech Republic must not forget that they have to comply with the Czech rules on the value-added tax (VAT).

If you intend to provide services to legal entities like corporations and companies (so-called business-to-business or B2B services), the VAT is payable in the country where the service recipient – i.e. the company – has its seat and it is payable by the service recipient. The service provider has to provide his tax identification number for VAT to the recipient.

If the service recipient is a natural person/final consumer, the VAT is paid by the service provider in his country of origin as if the service was provided there.

If the service provider establishes a permanent establishment/shop in the Czech Republic, he is obliged to pay income taxes in the Czech Republic (see "establishment" for more details).

The PSC can help you with contacting the right authority to get more information about the tax requirements in Czech Republic.

Further questions

If you have any further questions related to the cross-border provision of services in the Czech Republic by sole proprietors/self-employed persons, please submit your question via our on-line questionnaire. More detailed online information about the tax system in the Czech Republic can be found in the section Paying Taxes.