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Czech Value Added Tax (VAT): What you need to know for ICA’s 68th Annual Conference in Prague

Posted By Tolu Ilupeju, Friday, February 2, 2018

Question:  Why does ICA’s conference pricing seem higher this year?

Answer:  Conference pricing was unchanged from 2017; the prices of conference registration are exactly the same as they were for San Diego.  That said, because the conference is located in an EU member country -  it is subject to a Czech Value-Added Tax (VAT), an added fee in 2018. ICA does not receive any of this money; it is paid to the Czech government.

It’s the law in the European Union (EU). All Registration fees are subject to 21% Czech Value Added Tax (VAT) according to article §10b of Act No. 235/2004 Coll. A Value-Added Tax (VAT) is required by the laws and regulations of the European Union (EU) and its member states. They establish that VAT must be paid on the fees in the country where the meeting is held.

Do I submit my ICA issued invoice or receipt to recover VAT?  No! The proforma invoice and emailed receipt ICA issues to confirm your conference registration are NOT a valid VAT receipt, they should not be submitted.

How do I get a VAT receipt to apply to recover VAT?   To provide this service, ICA has partnered with a VAT consultant company, VMC, that specializes in managing and recovering VAT for association events hosted by organizations hosting conferences in the EU. The VAT invoice for your participation will be sent from VMC to you directly, via email, after you receive your ICA proforma invoice. It will be issued by the company: VMC, 1 Rond-point de l’Europe, 92250 LA GARENNE COLOMBES, France; French VAT Number: FR75523098614; Czech VAT Number: CZ682761770.

VAT exempted in France under article 259 A 5° a. of the French CGI. Subject to Czech VAT according to article §10b of Act No. 235/2004 Coll.

When will I receive my VAT invoice? 

ICA will report to VMC monthly, they will use our report to generate and send VAT invoices directly to you, via email.  The anticipated turnaround is quick, generally 2-4 days after we send VMC our report.  Depending on when you register, and where we are in our monthly reporting cycle, it could take up to approximately 30 days to receive your invoice; however in most cases it should be delivered more quickly.

 

FAQs about VAT:  Frequently Asked Questions about Czech Value-Added Tax:

  1. Why am I paying a VAT on the Meeting Registration Fee? You are paying a Value-Added Tax (VAT) on the registration fee because it is required by the laws and regulations of the EU and its member states. They establish that VAT must be paid on fees in the country where the meeting is held. 
  2. Can the VAT be recovered? Possibly. Only companies from the European Union and from Switzerland, Norway, and Macedonia can claim back the Czech VAT. To recover the VAT you must provide the details of your company - name, address, VAT number or Tax ID - for all expense invoices and submit all original documentation to your company for its processing.  Pay attention that the VAT refund on certain expenses like travel expenses, accommodation, meals or goods and services for personal consumption are not accepted by the Czech Tax Administration. 
  3. Does “company” include “university”?  Possibly.  If the university has the status of taxable person, then yes, it is considered as a company. Most universities in Europe choose to have the status of taxable person.
  4. What process should companies follow to recover the VAT?
  • EU Companies: EU companies must contact the Tax Administration of their own country for instructions regarding the conditions and process to follow for reclaiming the Czech VAT. There are also minimum VAT amounts that must be met.

For the refund applications for one to three quarters by an EU company the minimum amount is €400. If the refund application relates to a refund period of a calendar year or the remainder of a calendar year, the amount of VAT may not be less than €50. For conversion of EURO currency into the CZK currency it must be used the exchange rate mentioned by the Czech National Bank for the first working day in January of the year for which the application is submitted. Please note that these amounts refer to ALL the VAT from the expenses incurred FROM ALL ITS EMPLOYEES in the Czech Republic for this meeting and any other business-related VAT incurred in the Czech Republic.

 

  • Non-European Companies: The Non-European companies must send the VAT refund application directly to Finanční úřad pro Prahu 1 (Local Tax Office for Prague 1) at the address below and make sure their application is received at the latest by 30 June of the following year.  There are also minimum VAT amounts that must be met.

Finanční úřad pro hlavní město Praha
Územní pracoviště pro Prahu 1
Štěpánská 28
112 33, Praha 1
Czech Republic

Tel: +420 224 041 111
Fax: +420 224 043 198
e-mail: podatelna2001@fs.mfcr.cz

 

Additional details about VAT: The VAT refund must be at least CZK 7,000, unless the refund period is the calendar year or the last period of the calendar year. The refund for these refund periods must be at least CZK 1,000. Please note that these amounts refer to ALL the VAT from the expenses incurred FROM ALL ITS EMPLOYEES in the Czech Republic for this meeting and any other business-related VAT incurred in the Czech Republic.

 

You can find the form here, that must be completed and presented with the application. The application for VAT refund must be supported by the relevant invoices and a Certification that the applicant is a taxable person registered for VAT or similar taxes issued by the tax authority from the country of his establishment.

Tags:  April 2018  January-February 2018 

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