7. Recovery of indirect taxes

Czech indirect taxation system includes the value-added tax (VAT), excise duties and environmental taxes. It is based on EU regulations that harmonize the rules concerning indirect taxes across the Union.

VAT

The following VAT rates apply as of 1 January 2015:

21% VAT - most goods and services,

15% VAT - e.g. foodstuffs, newspapers and magazines, heating, cooling, water supply and public transport,

10% VAT - medicines, books, infant formulae.

There are VAT exemptions for certain postal services, radio and TV broadcasting, financial and insurance services, healthcare services, social care, education and real estate leasing.

Excise duties

Excise duties are levied on mineral oils, ethyl alcohol, wine, beer and tobacco products. The rates are flat, except for the excise duty on cigarettes which has a flat-rate component and an ad valorem component (percentage of the retail price).

Environmental taxes

Environmental taxes are levied on natural gas and some other gases, solid fuels and electricity.

7.1. VAT

The VAT recovery entitlements of persons enjoying privileges and immunities are subject to reciprocity in terms of entitled persons, eligible goods and services, and the minimum and maximum value of eligible purchases. This means that the VAT is refunded under the same conditions as those that apply to Czech nationals enjoying privileges and immunities in the sending State.

The VAT recovery entitlements of persons enjoying privileges and immunities in whose sending State the VAT is not included in the prices of goods and services are subject to the VAT Act(1) which sets out the categories of entitled persons, eligible goods and services, and the minimum and maximum value of eligible purchases.

__________

(1) Section 80 of Act No. 235/2004 concerning the value-added tax as amended.

7.1.1. VAT refunds - diplomatic missions, consular posts and representations of international organizations

The VAT is refunded only if the goods and services were purchased solely for official use and consumption. If there are reasons to believe that the goods and services were not purchased solely for official use and consumption, the refund claim is not accepted.

The VAT paid on motor vehicle fuel, spare parts and repairs is refunded only if the motor vehicle in question is registered with the Ministry of Foreign Affairs and the Ministry of Transport of the Czech Republic.

The entitlement to recover the VAT paid on the purchase of a motor vehicle in the Czech Republic and to get a VAT exemption when purchasing a motor vehicle from another EU Member State is subject to reciprocity. The number of eligible vehicles and the length of the inalienability period are also determined on a reciprocal basis. Where the principle of reciprocity cannot be applied, the scope of this entitlement is determined in proportion to the size of the mission. The VAT is refunded only if the vehicle has a diplomatic registration plate.

Passenger cars owned by members of diplomatic missions and consular posts will be exempted from taxation (in practice, the tax paid on purchase will be refunded) for the duration of the eligible person's posting to the Czech Republic, subject to the following quotas:

- ambassador, nuncio or a head of mission having an equivalent rank: 2 passenger cars, plus 1 passenger car if accompanied by a spouse or partner registered with the Ministry's Diplomatic Protocol,

- diplomatic staff, consular officers: 1 passenger car, plus 1 passenger car if accompanied by a spouse or partner registered with the Ministry's Diplomatic Protocol,

- administrative and technical staff, consular employees: 1 passenger car.

Passenger cars imported from third countries on a tax-free and duty-free basis, or purchased in another EU Member State on a tax-free basis, will be counted against these limits.

The numbers of passenger cars shown above represent the maximum limits for the duration of the eligible person's posting to the Czech Republic. The Ministry will not endorse the registration of any passenger car in excess of the limit set for the given staff category.

Members of the service staff are not eligible to claim the above tax exemptions (tax refunds). However, the Ministry may endorse the registration of passenger cars owned by the service staff.

The Ministry's Diplomatic Protocol will not endorse the registration of any motor vehicles other than passenger cars.

Filing deadline

Diplomatic missions, consular posts (consular posts headed by honorary consular officers are not entitled to recover the VAT) and international organizations can file their VAT refund claims once in a calendar month.

The entitlement is forfeited on 31 January of the calendar year following the calendar year in which the goods or services were supplied.

How to file the claim

The refund claim (“Přiznání k uplatnění nároku na vrácení daně z přidané hodnoty”) (2) with an enclosed record-keeping document (“Daňová záznamní povinnost”) (3) must be presented to the Diplomatic Protocol together with a verbal note. Tax documents (invoices and receipts) should not be presented to the Diplomatic Protocol.

The refund claim must contain the entity number, name and address of the mission, the total amount of VAT refundable (page 2), the stamp and signature of the head of mission or his/her authorized representative (page 2, the signature must match the specimen signature provided to the Diplomatic Protocol), the address or account number to which the refund is to be sent (page 2), and the reference number of the verbal note confirming reciprocal treatment in the area of the VAT (page 3).

__________

(2) The form can be downloaded from mzv.cz/protokol-formuláře.
(3) The form can be downloaded from mzv.cz/protokol-formuláře.

Tax documents

The refund claims filed with the Prague Tax Office - Prague 6 territorial branch (some consular posts file their claims with other tax offices) must be accompanied by tax documents. The tax document must contain the supplier’s business name and tax identification number, the customer’s name, description of the goods or services supplied (including quantity or number), the tax document registration number, the date of supply, the VAT rate and VAT base, the amount of the VAT and the total price including the VAT. The amount of the VAT must not be added in by hand.

When claiming a refund of the VAT paid on the purchase of a motor vehicle, the claimant must enclose the tax document and a copy of the vehicle registration certificate.

7.1.2. VAT refunds – members of the staff of diplomatic missions, consular posts and representations of international organizations and their family members

The VAT is refunded only if the goods and services were purchased solely for personal use and consumption. Personal consumption is deemed reasonable if it is proportionate to the normal income of staff members (salary rates prevailing in their professional categories), assuming that the staff
member has no independent financial resources (e.g. donations, inheritance) in the sending State. If there are reasons to believe that the goods and services were not purchased solely for personal use and consumption, the refund claim is not accepted.

The entitlement to recover the VAT paid on the purchase of a motor vehicle in the Czech Republic and to get a VAT exemption when purchasing a motor vehicle from another EU Member State is subject to reciprocity. The number of eligible vehicles and the length of the inalienability period are also determined on a reciprocal basis. Where the principle of reciprocity cannot be applied, the number of eligible motor vehicles is limited as follows:

ambassador or other head of mission: two motor vehicles plus one motor vehicle in case he/she is accompanied by a family member registered with the Ministry of Foreign Affairs of the Czech Republic,
member of the diplomatic staff or consular officer: one motor vehicle plus one motor vehicle in case he/she is accompanied by a family member registered with the Ministry of Foreign Affairs of the Czech Republic,
member of the administrative and technical staff or consular employee: one motor vehicle.

The VAT is refunded only if the vehicle has a diplomatic registration plate.

Staff members who have recovered the VAT paid on the purchase a motor vehicle in the Czech Republic or got a VAT exemption on the purchase of a motor vehicle from another EU Member State are liable to pay up the full amount of the VAT if their posting to the Czech Republic ends less than six months from the date on which the vehicle was assigned a diplomatic registration mark. This payment is not charged if the owner transfers the vehicle to another person enjoying privileges and immunities in the Czech Republic.

Filing deadline

Members of the staff of diplomatic missions, consular posts and international organizations and their family members (the service staff and private servants are not eligible to recover the VAT) can file their VAT refund claims once in a calendar quarter.

The entitlement is forfeited on 31 January of the calendar year following the calendar year in which the goods or services were supplied.

How to file the claim

The refund claims (“Přiznání k uplatnění nároku na vrácení daně z přidané hodnoty”)(4) with enclosed record-keeping documents (“Daňová záznamní povinnost”) (5) must be presented to the Diplomatic Protocol collectively (in alphabetic order) together with a verbal note. Tax documents (invoices and
receipts) should not be presented to the Diplomatic Protocol.

The refund claim must contain the entity number, the claimant’s first name and surname (as written on the diplomatic ID card), the claimant’s residence address (in the place where the mission is located), the total amount of VAT refundable (page 2), the stamp and signature of the head of mission or his/her authorized representative (page 2, the signature must match the specimen signature provided to the Diplomatic Protocol), the address or account number to which the refund is to be sent (page 2), and the reference number of the verbal note confirming reciprocal treatment in the area of the VAT (page 3). If the claimant does not have a valid diplomatic ID card, the Diplomatic Protocol will not endorse the claim.

__________

(4) The form can be downloaded from www.mzv.cz/protokol under Formuláře/Forms
(5) The form can be downloaded from www.mzv.cz/protokol under Formuláře/Forms

Tax documents

The refund claims filed with the Prague Tax Office - Prague 6 territorial branch (the staff of some consular posts file their claims with other tax offices) must be accompanied by tax documents. The tax document must contain the supplier’s business name and tax identification number, the customer’s name, description of the goods or services supplied (including quantity or number), the tax document registration number, the date of supply, the VAT rate and VAT base, the amount of the VAT and the total price including the VAT. The amount of the VAT must not be added in by hand.

When claiming a refund of the VAT paid on the purchase of a motor vehicle, the claimant must enclose the tax document and a copy of the vehicle registration certificate.

7.1.3. VAT exemptions on goods and services purchased from another EU Member State

VAT exemptions may be granted to diplomatic missions, consular posts, representations of international organizations and their staff members purchasing goods and services from another EU Member State. The exemption is subject to reciprocity in terms of entitled persons, eligible goods and services, and the minimum and maximum value of eligible purchases.

The VAT exemption entitlements of persons enjoying privileges and immunities in whose sending State the VAT is not included in the prices of goods and services are subject to Section 80 of the VAT Act which sets out the categories of entitled persons, eligible goods and services, and the minimum and maximum value of eligible purchases.

The amount of the VAT that the claimant would otherwise pay on these goods and services is counted towards the claimant’s maximum refund entitlement.(6)

__________

(6) Section 68, paragraphs 8 and 9 of Act No. 235/2004 concerning the value-added tax as amended.

VAT exemptions - diplomatic missions, consular posts and representations of international organizations

The exemption is granted only if the goods and services are purchased solely for official use and consumption. If there are reasons to believe that the goods and services are not purchased solely for official use and consumption, the exemption is not granted.

How to claim the exemption

The completed exemption certificate (Potvrzení o osvobození od daně z přidané hodnoty”)(7) must be presented to the competent tax office before purchasing goods or services from another EU Member State. The competent tax office is the Prague Tax Office - Prague 6 territorial branch (purchases of motor vehicles) or the Prague Tax Directorate (purchases of other goods and services); some consular posts present their certificates to other tax offices.

On the basis of this certificate, the supplier will make a VAT-exempt supply.

__________

(7) The form can be downloaded from www.mzv.cz/protokol under Formuláře/Forms

VAT exemptions - members of the staff of diplomatic missions, consular posts and representations of international organizations

The exemption is granted only if the goods and services are purchased solely for personal use and consumption. If there are reasons to believe that the goods and services are not purchased solely for personal use and consumption, the exemption is not granted.

How to claim the exemption

The completed exemption certificate (Potvrzení o osvobození od daně z přidané hodnoty”)(8) must be presented to the competent tax office before purchasing goods or services from another EU Member State. The competent tax office is the Prague Tax Office - Prague 6 territorial branch (purchases of motor vehicles) or the Prague Tax Directorate (purchases of other goods and services); the staff of some consular posts present their certificates to other tax offices.

On the basis of this certificate, the supplier will make a VAT-exempt supply.

Contact details
Ministry of Foreign Affairs, Loretánské náměstí 5, Praha 1
Diplomatic Protocol
Fax: 224 182 073
Jana Krbcová
tel: 224 182 828
e-mail: jana_krbcova@mzv.cr

General Directorate of Customs, Lazarská 7, Praha 1
tel: 296 854 093
e-mail: podatelna@fs.mfcr.cz

Financial Directorate for the Capital City of Prague, Štěpánská 619, Praha 1
tel: 224 041 111
e-mail: podatelna@pm.ds.mfcr.cz

Tax Office for the Capital City of Prague - Prague 6 territorial branch
Nábřeží Kpt. Jaroše 1000, Praha 7
Fax: 220 363 698
Eva Fořtová, director, Natural Persons Department
tel: 220 363 616
e-mail: eva.fortova@fs.mfcr.cz
Veronika Spudilová, head of unit
tel: 220 361 362
e-mail: veronika.spudilova@fs.mfcr.cz
Jana Penčevová
tel: 220 361 433
e-mail: jana.pencevova@fs.mfcr.cz
Eva Zezulová
tel: 220 363 432
e-mail: eva.zezulova@fs.mfcr.cz
Irena Vegerbauerová
tel: 220 361 432
e-mail: irena.vegerbauerova@fs.mfcr.cz

__________

(8) The form can be downloaded from www.mzv.cz/protokol under Formuláře/Forms

7.2. Excise duties

The excise duty recovery entitlements of diplomatic missions, consular posts, representations of international organizations and their staff members are subject to reciprocity in terms of entitled persons, eligible goods and the minimum and maximum value of eligible purchases. This means that
excise duties are refunded under the same conditions as those that apply to Czech nationals enjoying privileges and immunities in the sending State.

The excise duty recovery entitlements of persons enjoying privileges and immunities in whose sending State excise duties are not included in the prices of goods are subject to the Excise Duties Act(9) which sets out the categories of entitled persons, eligible goods and the minimum and maximum value of eligible purchases.

__________

(9) Section 15 of Act No. 353/2003 concerning excise duties as amended.

7.2.1. Excise duty refunds - diplomatic missions, consular posts and representations of international organizations

Excise duties are refunded only if the goods were purchased solely for official use and consumption. If there are reasons to believe that the goods were not purchased solely for official use and consumption, the refund claim is not accepted.

Excise duties paid on motor vehicle fuel, spare parts and repairs are refunded only if the motor vehicle in question is registered with the Ministry of Foreign Affairs and the Ministry of Transport of the Czech Republic.

Filing deadline

Diplomatic missions, consular posts (consular posts headed by honorary consular officers are not entitled to recover excise duties) and international organizations can file their excise duty refund claims once in a calendar month.

The entitlement is forfeited at the end of 31 January of the calendar year following the calendar year in which the goods were supplied.

How to file the claim

The refund claim (“Přiznání k uplatnění nároku na vrácení spotřební daně osobám požívajícím výsad a imunit”)(10) with an enclosed record-keeping document (“Daňová záznamní povinnost”)(11) must be presented to the Diplomatic Protocol together with a verbal note. Tax documents (invoices and receipts) should not be presented to the Diplomatic Protocol.

The refund claim must contain the entity number, name and address of the mission, the total amount of excise duty refundable (page 2), the stamp and signature of the head of mission or his/her authorized representative (page 2, the signature must match the specimen signature provided to the Diplomatic Protocol), the address or account number to which the refund is to be sent (page 2), and the reference number of the verbal note confirming reciprocal treatment in the area of excise duties (page 3).

__________

(10) The form can be downloaded from mzv.cz/protokol-formuláře.
(11) The form can be downloaded from mzv.cz/protokol-formuláře.

Tax documents

The refund claims filed with the Prague Customs Office (some consular posts file their claims with other customs offices) must be accompanied by tax documents. The tax document must contain the supplier’s business name and tax identification number, the customer’s name, description of the goods supplied (including quantity or number), the tax document registration number, the date of supply, the excise duty rate and excise duty base, the amount of the excise duty and the total price including the excise duty. The amount of the excise duty must not be added in by hand.

7.2.2. Excise duty refunds - members of the staff of diplomatic missions, consular posts and representations of international organizations and their family members

Excise duties are refunded only if the goods were purchased solely for personal use and consumption. Personal consumption is deemed reasonable if it is proportionate to the normal income of staff members (salary rates prevailing in their professional categories), assuming that the staff member has no
independent financial resources (e.g. donations, inheritance) in the sending State. If there are reasons to believe that the goods were not purchased solely for personal use and consumption, the refund claim is not accepted.

Filing deadline

Members of the staff of diplomatic missions, consular posts and international organizations and their family members (the service staff and private servants are not eligible to recover excise duties) can file their excise duty refund claims once in a calendar quarter.

The entitlement is forfeited at the end of 31 January of the calendar year following the calendar year in which the goods were supplied.

How to file the claim

The refund claims (“Přiznání k uplatnění nároku na vrácení spotřební daně osobám požívajícím výsad a imunit”)(12) with enclosed record-keeping documents (“Daňová záznamní povinnost”) (13) must be presented to the Diplomatic Protocol collectively (in alphabetic order) together with a verbal note. Tax documents (invoices and receipts) should not be presented to the Diplomatic Protocol.

The refund claim must contain the entity number, the claimant’s first name and surname (as written on the diplomatic ID card), the claimant’s residence address (in the place where the mission is located), the total amount of excise duty refundable (page 2), the stamp and signature of the head of mission or his/her authorized representative (page 2, the signature must match the specimen signature provided to the Diplomatic Protocol), the address or account number to which the refund is to be sent (page 2), and the reference number of the verbal note confirming reciprocal treatment in the area of excise duties (page 3). If the claimant does not have a valid ID card, the Diplomatic Protocol will not endorse the claim.

__________

(12) The form can be downloaded from www.mzv.cz/protokol under Formuláře/Forms
(13) The form can be downloaded from www.mzv.cz/protokol under Formuláře/Forms

Tax documents

The refund claims filed with the Prague Customs Office (the staff of some consular posts file their claims with other customs offices) must be accompanied by tax documents. The tax document must contain the supplier’s business name and tax identification number, the customer’s name, description of the goods supplied (including quantity or number), the tax document registration number, the date of supply, the excise duty rate and excise duty base, the amount of the excise duty and the total price including the excise duty. The amount of the excise duty must not be added in by hand.

7.2.3. Excise duty exemptions on goods purchased from another EU Member State

Excise duty exemptions may be granted to diplomatic missions, consular posts, representations of international organizations, their staff and the family members of their staff purchasing goods from another EU Member State. The exemption is subject to reciprocity in terms of entitled persons, eligible
goods, and the minimum and maximum value of eligible purchases.

The exemption entitlements of persons enjoying privileges and immunities in whose sending State excise duties are not included in the prices of goods are subject to Section 15 of the Excise Duties Act(14) which sets out the categories of entitled persons, eligible goods and the minimum and maximum value of eligible purchases.

The amount of excise duty that the claimant would otherwise pay on these goods is counted towards the claimant’s maximum refund entitlement.(15)

_________

(14) Section 15 of Act No. 353/2003 concerning excise duties as amended.
(15) Sections 11 and 15 of Act No. 353/2003 concerning excise duties as amended.

Excise duty exemptions on goods purchased from another EU Member State- diplomatic missions, consular posts and representations of international organizations

The exemption is granted only if the goods are purchased solely for official use and consumption. If there are reasons to believe that the goods are not purchased solely for official use and consumption, the exemption is not granted.

How to claim the exemption

Before purchasing goods from another EU Member State, the entitled diplomatic mission, consular post or international organization must present to the Prague Customs Office (some consular posts present their documents to other customs offices) an electronic movement document (“průvodní
doklad”) and a completed exemption certificate (“Potvrzení o osvobození od spotřební daně”)(16).

On the basis of this certificate, the supplier will make a supply without charging the excise duty.

__________

(16) The form can be downloaded from www.mzv.cz/protokol under Formuláře/Forms

Excise duty exemptions on goods purchased from another EU Member State- members of the staff of diplomatic missions, consular posts and representations of international organizations and their family members

The exemption is granted only if the goods are purchased solely for personal use and consumption. If there are reasons to believe that the goods are not purchased solely for personal use and consumption, the exemption is not granted.

How to claim the exemption

Before purchasing goods from another EU Member State, the entitled person must present to the Prague Customs Office (the staff of some consular posts present their documents to other customs offices) an electronic movement document (“průvodní doklad”) and a completed exemption
certificate (“Potvrzení o osvobození od spotřební daně”)(17).

On the basis of this certificate, the supplier will make a supply without charging the excise duty.

Contact details
Ministry of Foreign Affairs, Loretánské náměstí 5, Praha 1
Diplomatic Protocol
Fax: 224 182 073
Jana Krbcová
tel: 224 182 828
e-mail: jana_krbcova@mzv.cr

Customs Office for the Capital City of Prague, Washingtonova 7, Praha 1
Fax: 261 334 620
Marie Štraubová
tel: 261 334 118
e-mail: m.straubova@cs.mfcr.cz
Hana Malá
tel: 261 334 324
e-mail: h.mala@cs.mfcr.cz
Martin Kopačka
tel: 261 334 219
e-mail: m.kopacka@cs.mfcr.cz
Miluše Minarčiková
tel: 261 334 165
e-mail: m.minarcikova@cs.mfcr.cz
__________

(17) The form can be downloaded from www.mzv.cz/protokol under Formuláře/Forms

7.3. Environmental taxes

The entitlement of persons enjoying privileges and immunities to recover environmental taxes is subject to reciprocity(18). The existence of reciprocal conditions must be proved separately for each type of environmental tax.

Persons enjoying privileges and immunities in whose sending State environmental taxes are not included in the prices of goods are entitled to recover environmental taxes in the Czech Republic provided that Czech nationals enjoying privileges and immunities in the sending State are entitled to a refund of or exemption from taxes levied on electric energy, natural gas and solid fuels.

__________

(18) Act No. 261/2007 concerning the stabilization of public budgets as amended.

7.3.1. Environmental tax refunds - diplomatic missions, consular posts and representations of international organizations

Filing deadline

Diplomatic missions, consular posts (consular posts headed by honorary consular officers are not entitled to recover environmental taxes) and international organizations can file their environmental tax refund claims once in a calendar month.

The entitlement is forfeited upon the expiry of one year from the end of the tax period in which the entitlement accrued. The tax period is one calendar month.

How to file the claim

The refund claim (“Přiznání k uplatnění nároku na vrácení daně z/ze .....”)(19) must be presented to the Diplomatic Protocol together with a verbal note. Tax documents (invoices and receipts) should not be presented to the Diplomatic Protocol.

The refund claim must contain the entity number, name and address of the mission (pages 1 and 3), the total amount of environmental tax refundable (page 2), the stamp and signature of the head of mission or his/her authorized representative (page 2, the signature must match the specimen signature provided to the Diplomatic Protocol), and the address or account number to which the refund is to be sent (page 2).

__________

(19) The form can be downloaded from www.mzv.cz/protokol under Formuláře/Forms

Tax documents

Electric energy: the identification details of the supplier and of the end user, the registration number of the distribution point, the amount of electricity supplied (in MWh, exclusive of tax-exempt electricity), the amount of tax-exempt electricity supplied (in MWh), the total amount of tax (in CZK), the date of supply, the date of issue of the tax document, and the tax document number.

Natural gas: the identification details of the supplier and of the end user, the type and serial number of the gas meter installed at the offtake point (if gas is supplied by a gas company), the amount of gas supplied (heating value in MWh, exclusive of tax-exempt gas), the amount of tax-exempt gas supplied (heating value in MWh), the purpose for which the gas is used, the total amount of tax (in CZK), the date of supply, the date of issue of the tax document, and the tax document number.

Solid fuels: the identification details of the supplier and of the end user, the amount and type of solid fuel supplied (heating value of an original sample in GJ, exclusive of tax-exempt solid fuels), the amount and type of tax-exempt solid fuel supplied (heating value of an original sample in GJ), the total amount of tax (in CZK), the date of supply, the date of issue of the tax document, and the tax document number.

7.3.2. Environmental tax refunds – members of the staff of diplomatic missions, consular posts and representations of international organizations and their family members

Filing deadlines

Members of the staff of diplomatic missions, consular posts and international organizations and their family members (the service staff and private servants are not eligible to recover environmental taxes) can file their environmental tax refund claims once in a calendar month.

The entitlement is forfeited upon the expiry of one year from the end of the tax period in which the entitlement accrued. The tax period is one calendar month.

How to file the claim

The refund claim (“Přiznání k uplatnění nároku na vrácení daně z/ze .....”)(20) must be presented to the Diplomatic Protocol together with a verbal note. Tax documents (invoices and receipts) should not be presented to the Diplomatic Protocol.

The refund claim must contain the entity number, the claimant’s first name and surname (as written on the diplomatic ID card), the claimant’s residence address in the place where the mission is located (pages 1 and 3), the total amount of environmental tax refundable (page 2), the stamp and signature of the head of mission or his/her authorized representative (page 2, the signature must match the specimen signature provided to the Diplomatic Protocol), and the address or account number to which the refund is to be sent (page 2). If the claimant does not have a valid ID card, the Diplomatic Protocol will not endorse the claim.

__________

(20) The form can be downloaded from www.mzv.cz/protokol under Formuláře/Forms

Tax documents

Contact details
Ministry of Foreign Affairs, Loretánské náměstí 5, Praha 1
Diplomatic Protocol
Fax: 224 182 073
Jana Krbcová
tel: 224 182 828,
e-mail: jana_krbcova@mzv.cr

7.4. Annexes and Acts

To download on the website www.mzv.cz/protocol - Formuláře / Forms