Two million in turnover per calendar year, two thresholds, two deadlines of 10 working days each — and 12% of every night. How to keep an eye on the threshold and what happens when you cross it.
Two million crowns is a number every reasonably successful host should have stuck on the fridge. Exceeding it makes you a DPH (Czech VAT) payer — with everything that comes with it. Those who miss it typically find out from the finanční úřad (tax office): you become a VAT payer by law even without registering, and the tax for the whole period in between will be assessed on you.
Two thresholds, not one
Since 2025, turnover has been measured per calendar year, not over a rolling 12 months. And there are two thresholds:
| Threshold | What happens | Registration |
|---|---|---|
| CZK 2,000,000 | VAT payer from 1 January of the following year (or voluntarily earlier) | within 10 working days of exceeding it |
| CZK 2,536,500 | VAT payer from the day after exceeding it | within 10 working days, again, even if you've already filed the first one |
The first threshold gives you months to prepare your pricing. The second doesn't. If you have a strong season, you can cross both in a single summer.
What counts towards turnover
The payment you're entitled to for the stay — that is, the price paid by the guest, not the amount after the commission is deducted. The platform deducts its commission from the payout, so you cross the threshold before the corresponding amount shows up in your account. Exempt long-term rentals also count towards turnover, unless they're only occasional. And turnover is calculated per person, not per apartment: two apartments under one IČO (business ID number) share one threshold.
What being a VAT payer means
- 12% on the accommodation service. Accommodation falls under the reduced rate. If you leave your prices unchanged, that's 10.71% of what you collect from the guest — that's how much your revenue shrinks. If you raise prices by 12%, you risk your occupancy.
- Deducting VAT on costs: furnishings, energy, a cleaning company, platform commissions. That's the plus that gives back part of the loss.
- A monthly return and control statement. Fines for a late control statement are CZK 1,000 to 50,000.
- Platform commissions are still taxed at 21% under the reverse charge, only now with the right to deduct.
An identifikovaná osoba (identified person) and a VAT payer are two different things. As an identified person, you paid 21% on commissions regardless of turnover — and you still had to keep an eye on the VAT payer threshold.
How to register
The “Přihláška k registraci k DPH” (application for VAT registration), only electronically via the MOJE daně (My Taxes) portal. The tax administrator decides within 30 days. For applications filed by 30 September without opting for earlier VAT payer status, it first just notifies you and issues the decision in December, effective from 1 January.
Strategies around the threshold
I've seen three approaches. Stay below the threshold and block the calendar in December — this works with one apartment, not with two. Become a VAT payer voluntarily and reprice before the season, not in the middle of it. Or split the operation between a sole trader and an s.r.o. (Czech limited liability company), which is legitimate only if it's genuinely separate businesses, not an artificial split of the same apartment.
Whatever you choose, you need to see your turnover for the calendar year on an ongoing basis, not only in January from the platforms' invoices.
In Ubyo, Analytics shows the calendar-year turnover by month at its gross amount (what the guest paid), so you can see how far you are from both thresholds before you cross them.
Marco, founder of Ubyo — He has been running apartments in Prague for over seven years and wrote Ubyo because he didn’t want to do any of this by hand.
For information only, not legal or tax advice — always discuss your specific situation with a professional. This article is a translation of the Czech original.
