We are now frequently seeing interest from taxpayers who want to become voluntary VAT payers. If you are conducting economic activities and do not meet the conditions for mandatory VAT registration, you can apply for voluntary registration.

A new client approached us with this request after seeking accounting services. The owner of a newly established limited liability company. Since you can submit the application for voluntary registration at any time (even immediately) after the company is registered in the commercial register, we assisted the client accordingly.

For our client, registration was important for business relationships.

The above might not seem noteworthy in itself. However, now we will mention an important thing that can save you time, delays in registration, and unnecessary communication with the tax office in the case of voluntary VAT registration.

Approval of voluntary VAT registration today is not automatic. Tax authorities usually require a large number of documents that convince them that you are not establishing a “shell” company just to defraud the state with VAT refunds, but that you genuinely intend to conduct business – engage in economic activities.

To avoid wasting time and receiving a request from the tax administrator to supplement the application, we, together with the client, submitted documents proving active economic activities along with the registration application, such as:

• documents related to the registered office, i.e., the lease agreement for the company’s headquarters,

• the bank account agreement,

• a more detailed description of activities,

• a list of the client’s customers and suppliers,

• issued invoices,

• orders.

We also submitted other relevant documents with the application, such as employment contracts, employee records, and registration to the Employer Register (Czech Social Security Administration). The application went through without any problems.

Remember, tax authorities are required to investigate the reasons and circumstances under which a company is applying for voluntary VAT registration. The more information you provide immediately with your application, the greater the chance that the registration will proceed smoothly and without delays.