- Eligibility and Exemptions: Small enterprises in Czechia can opt for the SME scheme, which exempts them from various VAT obligations such as VAT registration, submitting periodical VAT returns, issuing invoices, keeping accounts, and submitting administrative statements. However, certain transactions, like cross-border supplies of new means of transport, are excluded from the scheme.
- Domestic SME Scheme: Small enterprises applying the SME scheme within Czechia are relieved from several VAT obligations. These include not having to state the beginning of their activity, register for VAT, submit periodical VAT returns, issue invoices, keep accounts, and submit administrative statements.
- Cross-Border SME Scheme: For small enterprises that apply the SME scheme in multiple Member States, VAT registration in each Member State is replaced by a single prior notification in their Member State of establishment. They must submit a single quarterly report in EUR for all Member States. They are also exempt from issuing invoices for B2C supplies, issuing full invoices for B2B supplies, keeping accounts, and submitting administrative statements.
- Transitional and Quarantine Periods: If the national annual threshold is exceeded, a transitional period applies. During this period, small enterprises may lose their simplified VAT obligations. Additionally, small enterprises excluded from the SME scheme or those that voluntarily leave the scheme will face a quarantine period during which they cannot benefit from the SME scheme exemptions.
- Appeals Process: Appeals related to the SME scheme depend on the nature of the issue. For domestic SME schemes, appeals should be directed to the Member State of establishment (MSEST). For cross-border SME schemes, appeals can be directed to either the Member State of establishment (MSEST) for issues like Union annual turnover and prior notifications or the Member State of exemption (MSEXE) for issues like national annual turnover and denial of access to the cross-border SME scheme.
Source ec,europa.eu
