Tax support for IT freelancers in the Czech Republic
- The obligations of a "Hybrid" VAT payer
- The preparation of up to 10 documents per month
- The preparation and submission of a VAT report or a Summary VAT report (services in the EU)
- Control of Datové schránky
- The preparation and submission of an annual tax report, PSSZ and VZP
- 1 hour’s worth of consultation per year
- Up to 30 min. accounting support by email per month
This price covers:
- The obligations of a fully-fledged tax payer
- The preparation of up to 20 documents per month
- The preparation and submission of a VAT report, a VAT Control message or a Summary VAT report
- Control of Datové schránky
- The preparation and submission of an annual tax report, PSSZ and VZP
- 1 hour’s worth of consulting per year
- Salary accounting for one employee
- Up to 30 min. accounting support by email per month
This price covers:
The main benefit for registering an individual entrepreneur in the Czech Republic
The magic of the lump-sum tax system in the Czech Republic is that you do not need to collect evidence of your expenses at all. IT expenses are automatically considered equal to 60% of the number of invoices issued.
The main benefit to joining the IE club in the Czech Republic is that one may gain access to a residence permit or even EU citizenship. If you’re not sure if this applies to you, get a free consultation from our specialists. They will evaluate your specific situation and advise you on the optimal solution.
Which tax mode should I choose?
If you are registered as an individual entrepreneur and issue invoices to customers in other EU countries (or conduct foreign economic activity), then you need to at least register for the simplified (“European”) VAT accounting system (the “Simplified VAT Payer” tariff). In this case, you submit VAT reports only at the time of invoicing in the EU, but you remain a VAT defaulter inside the Czech Republic. If you want to fully enjoy the benefits of VAT refunds within the Czech Republic (for example, from buying a new computer, car or mobile phone), or you have many counterparties paying VAT in the Czech Republic (for example, DoMyTax, lawyers, and B2B clients), then, in this case, the most logical step is voluntary registration for VAT within the country (the “Fully-fledged VAT payer” tariff). It is worth noting that as soon as your revenue in the Czech Republic exceeds 1 million CZK within 12 consecutive months, you are obliged to become a fully-fledged VAT payer.
Questions and Answers
-
If I issue invoices outside the European Union, is VAT registration necessary?
-
At what time is it necessary to register for the "Hybrid/European" VAT?
-
If I provide services outside the Czech Republic (EU and 'third world countries'), do I need to pay VAT in the Czech Republic?
-
If my EU client has not provided me with a VAT number, what should I do? Do I have to invoice him with Czech VAT? Do I have to submit a report to the European Union?
-
If I change one cryptocurrency for another, does this need to be taken into account when calculating the profit from the sale of cryptocurrencies?
-
If I give a cryptocurrency to a relative, should I admit it in the annual report?
-
If I'm mining cryptocurrency, do I have to have a license for that?
-
Are there any benefits when investing in securities?
-
Do I have to report income from dividends received in the USA in the Czech Republic?
-
Can I get a mortgage in the Czech Republic?
-
Is the Czech national health insurance system available to foreigners?
-
Can I suspend or terminate the activity of an individual entrepreneur?
Why is it a good idea to entrust DoMyTax with IT freelancer accounting?
- We not only speak your language but also understand the problems that taxation can cause for foreigners, including issues of obtaining and extending residence permits, getting mortgages, etc.
- We are qualified in matters of taxation of any complexity: foreign income, cryptocurrency, dividends, sale of shares, and much more.
- You will save money. Our specialists will compile reports so that you don’t pay more taxes than you need to.
- You will be able to extend the reporting period by 3 months. Our team has a tax specialist (dainový poradce), who has the right to file reports with an extension of 3 months from the standard filing period and will also help solve issues of any complexity.
Additional services:
- Registration of an individual entrepreneur with 6 months of accounting (free of charge). The “Start" tariff is suitable for invoicing in the Czech Republic – 13,900 CZK,
- Registration for pensions and medical insurance – 650 CZK / registration,
- Opening a bank account - 12,000 CZK,
- Termination / suspension of an IE (including insurance) – 4,500 CZK,
- Making changes to the IE’s registration data – 7,500 CZK,
- Tax consultations – from 1,300 CZK / hour,
- Postponing the deadline for submission (up to 3 months), including the signature of the declaration by a tax specialist – 7,500 CZK
* Prices are shown excluding 21% VAT.