The VAT reverse charge is a mechanism used in the European Union’s Value Added Tax system where the responsibility for reporting and paying VAT is shifted from the supplier to the customer. In essence, the customer becomes liable to report the VAT on the transaction instead of the supplier. This mechanism is typically applied to…
PRAGUE, CZECHIA – Self-employed persons (Osoby Samostatně Výdělečně Činné – OSVČ) in the Czech Republic must prepare for significant legislative changes coming into effect in 2025 and 2026. The Czech Social Security Administration (ČSSZ) is implementing mandatory electronic communication and substantial increases to the minimum monthly assessment base for pension insurance. The Shift to Mandatory…
Entrepreneur expats invoicing in the Czech Republic must grasp VAT (DPH – daň z přidané hodnoty) regulations to ensure compliance and smooth business operations. Here’s a comprehensive guide to understanding the mandatory 2 million VAT registration threshold and its implications. What triggers the mandatory VAT registration? Exceeding a turnover of 2 million CZK within 12…
Are you considering becoming a sole trader in the Czech Republic? If so, understanding the various types of trader’s licenses available and their respective requirements is crucial. In the Czech Republic, there are four main types of licenses, each with its own set of conditions for acquisition. Let’s delve into how to obtain a trader’s…
For entrepreneurs operating as self-employed individuals (OSVČ – osoba samostatně výdělečně činná) in the Czech Republic, it’s crucial to grasp the forthcoming hike in minimum monthly contributions towards social and health insurance. These adjustments necessitate prompt action to ensure compliance and avoid penalties. The Basics of Business and Insurance Contributions Self-employed individuals are obligated to…
Following the ever-changing tax obligations for freelancers (OSVČ) in the Czech Republic can be a complex endeavor, but for some self-employed individuals, the flat rate tax (paušální daň) offers an appealing solution. This method, characterized by its administrative simplicity and potential tax savings, holds particular allure for certain freelancers. However, as we delve into how…
Navigating the Czech tax system can be daunting, especially for expat freelancers who might not be fluent in the language. What makes the task outright scary is that some of the official websites associated with filing taxes have no – or only partial – English language version. From understanding different types of freelance taxes to…
Living and working in the Czech Republic comes with the responsibility of paying income tax, a process that involves submitting a tax return to Czech institutions. Navigating the Czech tax system can be complex, especially for expatriates and first-time filers, and understanding which documents to submit and how to properly file taxes (daňové přiznání) is…
With the recent bull market, Bitcoin halving, and the surge in popularity of cryptocurrencies (kryptoměny), many freelancers are turning to digital assets as part of their payment methods. However, the taxation of cryptocurrencies is usually complex, especially for expats in the Czech Republic. Each country has its own rules regarding cryptocurrency taxation, making it essential…
If you come from abroad but pay your taxes in the Czech Republic, navigating the differences between your home country’s tax system and that of the Czech Republic can be difficult to figure out. This guide aims to shed light on the variances, focusing particularly on the intricacies of freelance tax obligations. Main Highlights of…