Recently, the tax offices in the Czech Republic have scrutinized companies that did not conduct real business activity in the last 12 months and initiated the process of deregistering the company from VAT. Before this happens, however, each such company is informed in writing about the commencement of the VAT deregistration process and asked to provide detailed information in the event that it still wishes to remain a VAT payer.

Most of us know that registration for VAT is not the easiest one and very often it takes weeks. We are happy to receive the information that our company has become a VAT payer and we can start running our dream business. Unfortunately, some people mistakenly believe that VAT registration only entitles you to deduct VAT on business purchases.