Freelancers (fair trade license holders) in the Czech Republic must file taxes once every year. If invoicing any EU-registered business client outside of the CZ, you must also register as a Light VAT payer. This entails additional tax reporting requirements, which can sometimes be a handful to say the least.
For one, you must submit monthly VAT-Light Reports to the Czech Financial office. In fact, you have 15 days from the date of invoicing outside the CZ to make these reports. This is in addition to the annual tax report. The annual tax report declares earned income along with health & social insurance contributions. It also declares any deductibles or tax credits, which after calculated amounts to what’s owed in taxes.
What this means is regularly collecting official statements, prepping documents, and too-often traveling from office to office. It’s not only time-consuming, getting everything submitted on time, to the right place, and correctly can be stressful. Especially if you don’t speak Czech! But here, Pexpats can help. We handle everything on your behalf, from monthly Light VAT reports to filing taxes at year’s end. Read on to discover our All-Inclusive Tax Package for yourself.