Shrnutí: In 2026, two VAT rates apply to taxable transactions in the Czech Republic: the standard rate of 21% and the reduced rate of 12%. The calculation of VAT depends on whether you use the pre-tax price or the final price including VAT. We’ll show you simple formulas and examples and explain which goods and services each rate applies to.
If you’re looking for the 2025 VAT rates, the basic structure remains unchanged for 2026—the standard rate of 21% and the reduced rate of 12% continue to apply.
Not sure if you’re applying the correct VAT rate to a specific good or service? Our attorneys will help you assess your specific tax situation and alert you to any risks before the tax authority gets involved.
Until the end of 2023, three rates applied in the Czech Republic: 21%, 15%, and 10%. Starting in 2024, the law therefore provides for two VAT rates on taxable transactions: the standard rate of 21% and the reduced rate of 12%. In addition, there are also tax-exempt transactions, with a specific regime applying, for example, to books.
This reform has significantly altered everyday prices: VAT on food, for example, fell from 15% to 12%, making baked goods and dairy products cheaper. Non-alcoholic beverages followed the opposite trend, returning to the standard rate of 21%; so soft drinks became more expensive. The 15% rate was completely abolished, and therefore the 15% VAT rate no longer applies to anything today.
We’ll help you navigate not only the law, whether it involves resolving a specific tax situation, preparing for a tax audit, or defending yourself in court.
The standard rate of 21% remains the backbone of the Czech VAT system and applies to most goods and services: electronics, automobiles, construction work (with exceptions such as construction work on residential buildings), professional services, and cosmetic procedures.
As of January 1, 2024, we have phased out the two reduced rates of 15% and 10%. The consolidation package has merged them into a single reduced rate of 12%. It applies to food, lodging and food service, medications, medical devices, child car seats, funeral services, and, for example, non-scheduled passenger bus transportation.
The supply of books, e-books, and, under certain conditions, audiobooks is exempt from VAT with a right to deduction. This is not strictly a “zero VAT rate,” even though the result for the customer is that VAT is not added to the price of the book.
See also how the obligations differ for VAT payers and non-VAT payers.
The best way to understand the correct rate is through specific examples. Food items, including bread, meat, milk, and gluten-free products, have been taxed at 12% since 2024. In contrast, electronics (e.g., cell phones, computers, or televisions) are subject to the standard rate of 21%.
Most services, such as hair salons, legal advice, or IT consulting, are also taxed at 21%, unless the law provides for an exception. In the transportation sector, the rate depends on the nature of the service: regular public transportation, such as city buses or trains, as well as irregular passenger bus services, fall under the 12% rate, while taxis and courier services remain at 21%.
For construction work, you apply the 12% rate if the structure is intended for residential use. If the structure does not meet the criteria for social housing, the rate changes to 21%.
Practical tip: The greatest risk does not arise from the VAT calculation itself, but from selecting the wrong rate. A common mistake is automatically applying the 12% rate simply because the goods or services “resemble” another item subject to the reduced rate. What matters is the legal classification of the specific transaction, not its common commercial designation.
Be sure to also read our other article on VAT in general : what it is, how it works, and how it’s calculated in the Czech Republic.
VAT calculations may seem daunting, but in reality, all you need to do is follow a few simple rules. You can handle the following steps even without a calculator, though an online VAT calculator will save you time and minimize the risk of errors.
To add tax to an invoice, use the following VAT calculation formula:
Example: You’re selling a laptop for 20,000 CZK before tax. The tax rate is 21%.
VAT = 20,000 × 0.21 = 4,200 CZK.
Price including VAT = 20,000 + 4,200 = 24,200 CZK.
If you need to calculate the VAT based on the final price, subtract the tax as follows:
Example: A receipt lists a price of 112 CZK for a food item (reduced rate of 12%).
Tax base = 112 / 1.12 ≈ 100 Kč.
VAT = 112 − 100 = 12 Kč.
Calculating the VAT itself is usually straightforward. What’s more complicated is determining which rate to apply and whether you’re entitled to a credit. If you’re dealing with a non-standard transaction, a disputed invoice, or a tax audit, we’ll help you assess the correct procedure under the VAT Act.
When is it worth registering as a VAT payer? Our next article will answer that question.
In 2026, the standard VAT rate of 21% and the reduced rate of 12% apply to taxable transactions in the Czech Republic. The reduced rate applies only to goods and services specified by law, while books, for example, are exempt from VAT with a right to deduction if certain conditions are met. To calculate VAT from the pre-tax price, multiply the base amount by the applicable rate; when calculating from the final price, divide the price by a factor of 1.21 or 1.12. Before performing the calculation, it is always most important to correctly determine which tax regime applies to the specific transaction.
First, make sure you know the tax rate. For a 12% rate, divide the final price by 1.12; the difference is the tax. For a 21% rate, divide by 1.21. For example, a price of 242 Kč at a 21% rate includes 42 Kč in VAT and 200 Kč in base price. If you issue dozens of receipts a day, the safest option is to use a VAT calculator that uses current rates.
The online VAT calculator will calculate both the tax base and the price including VAT for you. When calculating VAT manually, follow the formulas above and be sure to use the current VAT rate of 12% or 21%.
As a taxpayer, you can claim a VAT deduction on invoices you receive. On your tax return, you report the input VAT (from purchases) and deduct it from the output VAT (from sales). This requires a properly issued tax document and that the purchased goods or services be related to your business activities. If you purchase tax-exempt goods (such as books), you cannot claim the deduction.
Most services are subject to a 21% tax rate; some (such as lodging and funeral services) are subject to a 12% tax rate. Always check to see if a specific service is explicitly listed in the annex to the VAT Act.
Digital publications (e-books, audiobooks) are subject to a zero VAT rate in the Czech Republic if you sell them to domestic customers. If you offer them to consumers in other EU countries, you must apply the rate of the respective country.
The key factor is the classification of a specific good or service under the VAT Act. In cases of uncertainty, it is also possible to seek a binding determination of the tax rate.
Only if you supply the materials along with construction services. The sale of construction materials alone, without installation, is subject to the 21% tax rate.
Not sure how to do your taxes correctly so you don’t get it wrong? We can help you navigate the law, whether it’s dealing with a specific tax situation, preparing for an audit by the tax authority or defending yourself in court.
Ondřej is the attorney who came up with the idea of providing legal services online. He's been earning his living through legal services for more than 15 years. He especially likes to help clients who may have given up hope in solving their legal issues at work, for example with real estate transfers or copyright licenses.
Ondřej is the attorney who came up with the idea of providing legal services online. He's been earning his living through legal services for more than 15 years. He especially likes to help clients who may have given up hope in solving their legal issues at work, for example with real estate transfers or copyright licenses.
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