The popularity of VAT groups is increasing with good reason. VAT groups between taxpayers are often established based on shared financial and economic shared interests, and typically operate by designating all VAT-responsibilities to a single member of the group. There are also further VAT concessions aside from reducing administrative-related duties, such as the exclusion of VAT between members of the same group, and in some cases the filing of single tax returns. These measures cumulatively contribute to a significant simplification of the VAT process.

For these reasons, VAT groups have been earmarked as an integral part of the Czech Republic’s fiscal infrastructure, and the deadline for the submission of an application for the formation of a VAT group is fast approaching. Interested parties must apply by 31 October 2023 at the latest for a VAT group to become effective from 1 January 2024.

VAT groups are becoming more commonplace, with Poland with the most recent country to legalise the formation of VAT groups from January 2023. Tungsten Network is currently considering the impact of VAT groups on its Polish e-invoicing solution, which you can read more about here.