Identified person registration and cancellation

In this article, we explain in clear terms when you become an identified person automatically and when voluntary registration is worthwhile, how to apply, and how and when to cancel your registration.

who is a taxable person?

A taxable person is a special status in the VAT system. It is a taxable person who is not a VAT payer (or a non-taxable legal person), but must register for VAT purposes because of selected cross-border transactions.

How to become an identified person

The law explicitly provides for several situations in which you become an identified person from a non-taxpayer. These include mainly:

• Purchases of taxable goods from the EU– you become an identified person once you have purchased goods worth more than CZK 326,000 in the relevant year or the immediately preceding year. Exceptions are new vehicles and goods subject to excise duty (these are always taxable).
• Receipt of a taxable supply (typically a service) with the place of supply in the Czech Republic from a person not established in the Czech Republic – you are an identified person from the date of receipt of the supply (or from the date of receipt of consideration if the liability arises from the consideration (e.g. when you pay for advertising on social networks or licenses of various programs).
• Supply of a B2B service with a place of supply in another Member State – you are an identified person from the date of supply of the service.

In addition, the law also allows for voluntary pre-registration – for example, if you know that you will soon start sourcing goods from the EU, or receiving or providing the above services. In these situations, you only become an identified person from the day after you are notified of the registration decision.

When do you have to register: what is the deadline?

Once the relevant transaction has taken place and you have become an identified person, you have a 15-day period to apply for registration. These are calendar 15 days (not working days), so watch the deadline carefully.

Example: you pay your Irish advertising on 3 September 2025, so you automatically become an identified person on 3 September 2025 and must apply no later than 18 September 2025. If, on the other hand, you apply for voluntary registration on 1 September 2025 and the authority notifies you of the decision on 10 September 2025, you become an identified person on 11 September 2025 (and do not go back 15 days).

Please note: The tax administrator may impose a fine of up to CZK 500,000 for failure to comply with the registration obligation.

Step-by-step registration of an identified person

When to apply

You must apply to register as an identified person within 15 days of the date you became an identified person (i.e. when the relevant transaction occurred). You can also voluntarily register if you know that a qualifying transaction will occur. For voluntary registration, you become an identified person only from the day after the notification of the registration decision.

You can apply electronically via the My Taxes portal (electronic forms – VAT registration application; select the type of registration: identified person). You will register (data box/NIA identity) and attach supporting documents to prove the liability (e.g. an invoice from a foreign service provider).

What happens after dispatch: decision and start of duties

Once the application has been submitted, the registration procedure takes place. The result is a registration decision, based on which:

• For compulsory registration (where you have already become an identified person through a transaction), you are just “catching up” with the formal registration. You are therefore already fulfilling your tax obligations (VAT returns for the month in question, or a summary report) in connection with the original transaction that created your status as an identified person
• In the case of voluntary registration, you are only an identified person from the day after the notification of the decision.

Cancellation of registration of an identified person

You can cancel the VAT registration of an identified person either at your own request or ex officio by the tax office. It is worth knowing what conditions you have to meet, from when the cancellation is effective and what you still have to look after.

Cancellation on request

You can apply for cancellation of your registration if you are not registered in the Czech Republic under one of the special schemes of one administrative location (OSS – EU scheme or import IOSS) and you meet all the following conditions:

1. For the last 6 consecutive calendar months you have not been obliged to: declare VAT on services received from a person not established in the country; declare VAT on the supply of goods with installation or assembly or the supply of goods by systems or networks; declare VAT on the acquisition of a new means of transport or excisable goods; submit a summary declaration (typically for B2B services to the EU).
2. In the current or previous calendar year, you did not purchase goods from another Member State with an aggregate value, net of tax, of more than CZK 326,000 , and you did not (voluntarily) elect to be taxed in the Czech Republic on the purchase of goods from the EU.
3. You have ceased to carry out an economic activity (as far as you are concerned).

If the tax authority grants the request, you will cease to be an identified person on the day following the date of receipt of the decision to cancel your registration. There is no appeal against the cancellation decision on request.

Example: you are a non-taxpayer and last received an advertisement from Ireland in January. In February-July (6 months in a row), you have not received any similar service or provided a B2B service to the EU, and you have not exceeded the limit of £326,000 for the purchase of goods from the EU in 2025 or 2024. In August (after the 6-month condition has been met), you make an application. Once you receive the decision, you are no longer an identified person from the following day.

Attention OSS/IOSS: If you are domestically registered in the special scheme of one administrative location, you must first deal with deregistration from the special scheme; only then can you apply for deregistration of the identified person.

Ex officio revocation: when the tax office can intervene

The tax authority may cancel the registration of an identified person ex officio if you have not been obliged to declare tax at all in the two immediately preceding calendar years (i.e. you have been “inactive” in terms of your obligations as an identified person). In such a case, you cease to be an identified person on the date the decision becomes final. Unlike a revocation at your own request, you can appeal against this decision.

You also cease to be an identified person if you become a VAT payer. The registration of an identified person then ceases on the day before the day on which you become a taxable person (i.e. there is no overlap). The same applies when you join a group. Laws for people

Summary

Compulsory registration arises automatically when you purchase goods from the EU in excess of 326,000 CZK, receive a service from the EU with a place of supply in the Czech Republic or provide a B2B service to another EU state. In this case, the 15 calendar days for filing run. Registration can also be done voluntarily in advance, and the status is not effective until the day after the decision is notified. Failure to comply may result in a fine of up to CZK 500,000.

Registration can be cancelled on request if no tax liability has arisen in the last 6 months, the limit for the acquisition of goods from the EU has not been exceeded, there is no economic activity and you are not registered in the OSS/IOSS. Ex officio cancellation is carried out by the tax office in case of two years of non-compliance. An identified person also ceases to exist when switching to a VAT payer or joining a group.

Can I have the status of a VAT payer and an identified person at the same time?

No, VAT and identified person status are not combined. If you become a taxable person, the registration of an identified person ceases.

Is voluntary registration worthwhile?

Yes, if you know that you will soon be purchasing goods or receiving/supplying services from/to the EU and you want to have your obligations sorted out in advance so that you do not have to deal with deadlines retrospectively.

What are the penalties for errors in the identified person scheme?

A fine of up to £500,000 for late registration, penalties and interest for late payment of VAT and possibly further penalties for failure to file a return.