The end of the school year is fast approaching, which, in addition to the beginning of the school holidays, also means that taxable persons established outside the EU have one last chance to apply for a VAT refund under Section 83 of the VAT Act. As the deadline of 30 June falls on a Sunday this year, the deadline for applications has been extended until 1 July 2024 inclusive; later applications will no longer be considered.

VAT refunds to foreign entities apply only to entities from third countries, for which the so-called “reciprocity principle” operates, which in practice means that only entities from countries, where a Czech taxable person can apply for a refund under similar conditions, are entitled to a refund. These are currently the UK, Norway, Switzerland and Macedonia.

Although, in principle, persons are entitled to a refund of tax on supplies under similar conditions under which a taxpayer can claim a deduction, tax cannot be refunded on selected supplies related to personal consumption and representation.

The application for VAT refund for 2023 with all the necessary essentials is submitted in Czech language to the Financial Office for the Capital City of Prague on the form prescribed by the Ministry of Finance, and unfortunately there is still no possibility to submit it electronically.

Please do not hesitate to contact us if we can be of assistance to you or the foreign entities concerned.