Guide To Tax Refund In Czech Republic
Czech Republic is located just next to Germany and Austria. This country is certainly a must-go if you are travelling in Europe. And if you’re hunting for designer handbags, you can get your VAT back just like the other EU countries. However, do know that some brands like Chanel and Celine are not located in this country yet.
What is DPH?
DPH is a short term for VAT in Czech, it works the same like Sales Tax in the US or GST in Australia. The current VAT rate in Czech Republic is 21%.
Who are eligible to apply for Tax Refund?
The tax free program started in 1 April 2000. People who do not have a permanent residence in the Czech Republic or the EU countries can apply for VAT refund.
You have to spend at minimum 2000 CZK (around $90 USD) at one day at one vendor in order to be eligible for the tax-free refund program.
Time limit for Customs Approval
From the day of purchase, the goods need to leave the country within 3 months.
How To Claim Tax Refund in Czech Republic, a step by step Instruction?
1. At the store: can you get your VAT back in this shop?
Check whether you can get VAT refund from the store you’re visiting. Either find the tax-free sign or ask the Shopping Assistant for more details.
2. At the cashier: show your passport
After you let the staff know that you want to apply for VAT refund, she will ask for your passport as an verification.
3. The Tax Free Form
Just like in other EU countries, you need to fill in the Tax Free Form. Complete the form and if you have difficulties, then ask the staff for help.
“Incomplete tax free form means no tax refund. So make sure all the information are filled in.”
4. Take the original receipts
Remember to take the receipts as well. And make sure all the documents are put in a safe place. The goods need to be packed and unused.
“Remember that you can apply for VAT refund at your last EU country.”
5. At the airport: find the custom desk
Find the customs at the airport and present them the following information:
- Your passport
- The Tax Free Forms
- Purchased goods (packed and unused)
If everything is complete, the custom will give you the official stamps on your Tax Refund Forms.
“Go to the airport early, because the tax refund process can take some time. You don’t want to miss your flight.
5. Find the Refund Office
The Refund Offices are usually located at the Airports. Find them and present the tax Free Forms with Custom Stamps
6. Refund payment options
You can get the VAT back in two ways:
- Cash: You can ask for cash, but sometimes you need to pay an extra fee, which will be deducted from your tax refund.
- Credit card: you can choose for Credit card, but this can take some time.
Our advice is always ‘take the cash’, because it will avoid any hassle in the future if something went wrong.
Tax refund overview in Czech Republic
|Value||Tax Refund in CZK||Tax Refund in %|
|6250 CZK||730 CZK||11,68%|
|12500 CZK||1450 CZK||11,60%|
|25000 CZK||2990 CZK||11,96%|
|50000 CZK||6500 CZK||13,00%|
|75000 CZK||10500 CZK||14,00%|
|100000 CZK||15500 CZK||15,50%|
|125000 CZK||19375 CZK||15,50%|
|150000 CZK||23250 CZK||15,50%|
|175000 CZK||27125 CZK||15,50%|
|200000 CZK||31000 CZK||15,50%|
|225000 CZK||34875 CZK||15,50%|
|250000 CZK||38750 CZK||15,50%|