Voluntary registration for VAT can be considered whenever the conditions for compulsory registration are not met and the person is a so-called taxable person. This means that he/she carries out an economic activity defined in the VAT Act and wants to be a VAT payer.
For example, consider the situation of a newly established limited liability company. The company decides after incorporation that it wants to be subject to VAT. It can apply for voluntary registration at any time (i.e. immediately) after the company has been entered in the commercial register.
On the website of the Ministry of Finance in the portal my taxes in the electronic submissions to the Tax Administration we find the section Electronic forms, then registration forms, until we come across the application for registration for value added tax. Once the form has been completed, it needs to be sent electronically to the tax authorities in xml format.
However, it is necessary to prepare for the fact that the tax authorities no longer carry out voluntary registrations on the spot at the same time as the registration of a legal or natural person for income tax. Today, they very often request additional data. They verify the economic activity, primarily by providing documents relating to the registered office, i.e. the lease agreement for the registered office or business premises, the bank account agreement (if not already submitted at the time of initial registration), a more detailed breakdown of activities, the identification of key customers and suppliers, the submission of invoices, orders, e-mail communications, etc.
Nowhere in the law is it specified what the tax authority can demand – it is therefore up to each person to prove credibly that he/she carries out or will carry out taxable supplies eligible for deduction and is a taxable person.
We recommend that you submit these items (documents) with your application for voluntary registration now, so as not to unnecessarily prolong your registration period.
If you only submit the form, the tax authorities send notices to remove doubts in the registration data on the basis of the provisions of Section 128(1) of Act No. 280/2009 Coll., the Tax Code. They give sufficient time, namely 15 days, to complete the application.
According to our experience with VAT registrations and requests for completion of data by the FÚ, we recommend sending the form with:
- description of economic activity
- how and where it is carried out;
- a list of suppliers and customers with whom you have already established contact.
You can also add (and we recommend it if you already have such documents):
- contracts (with customers, with suppliers, etc.),
- accounting documents,
- handover reports.
You can say whether you already have any employees. If so, again provide relevant evidence, such as employment contracts, employee records, registration in the employers’ register with the Czech Social Security Administration.
If you have already purchased goods or services, provide copies of invoices. Indicate who keeps your accounts and where the company is based. Indicate what explicit costs you have incurred so far in connection with the preparation for the performance of the declared economic activity and from what funds you are financially supporting them (if these are your own funds, you can prove their availability by, for example, a bank account statement showing the cash balance; in the case of foreign funds, you can provide evidence of, for example, a loan agreement, a credit agreement, or a credit agreement. If you are operating with very low share capital, you may need to make a loan agreement (e.g. a loan agreement, a loan contract, a loan document, a loan agreement for a loan, a loan agreement for a loan, a loan agreement for a loan, an otherwise secured financing), especially if you are operating with very low share capital.
You then become liable for VAT from the day following the date of notification of the decision to register for VAT.