First, an Important Distinction

Airbnb is based in Ireland. When you pay Airbnb service fees, you are purchasing services from a business established in another EU Member State.

Because of this, most Czech businesses hosting through Airbnb are required to register as an Identified Person for VAT, even if they are not VAT payers.

The same rule generally applies to services provided by companies such as:

• Airbnb
• Booking.com
• Google Ads
• Meta Ads (Facebook)
• many other foreign service providers

Being an Identified Person does not automatically make you a VAT payer.

When Must You Register as a VAT Payer?

Businesses operating in the Czech Republic must register as VAT payers once they meet the conditions established by Czech VAT legislation.

Since 2025, VAT registration is based on your turnover during the calendar year, rather than the previous rolling 12-month period. Czech law now defines two statutory turnover thresholds, each with different consequences for VAT registration.

If your business is growing, it is important to monitor your turnover regularly to avoid missing the registration deadline.

How Does VAT Registration Work?

VAT registration is completed electronically through the Czech Financial Administration.

You will typically need:

• your business identification details,
• access to your Data Box (Datová schránka),
• information about your business activities,
• any supporting documents requested by the tax authority.

The registration application must be submitted within the statutory deadline after your registration obligation arises.

What Changes After Registration?

Once you become a VAT payer, additional obligations apply.

These usually include:

• submitting VAT returns,
• maintaining VAT records,
• submitting VAT Control Statements when required,
• issuing tax-compliant invoices.

On the other hand, VAT payers may generally deduct VAT paid on business-related purchases, provided the statutory conditions are met.

What Happens If You Register Late?

Late VAT registration may result in:

• additional VAT assessments,
• late payment interest,
• financial penalties,
• unnecessary administrative complications.

Keeping track of your turnover throughout the year can help you avoid these issues.

How Best Guest Can Help

Best Guest helps Airbnb and Booking.com hosts automate the administrative side of short-term rentals.

Our platform simplifies guest registration, legal reporting, and other compliance tasks required when operating a short-term rental business in the Czech Republic.

If you are starting your hosting business, make sure you understand:

• whether you need a trade license,
• whether you must register as an Identified Person for VAT,
• whether you are approaching the VAT payer registration threshold.

Taking care of these requirements early can save significant time and prevent costly mistakes later.

Frequently Asked Questions

Do I become a VAT payer automatically when I start my business?

No. Simply starting a business does not automatically make you a VAT payer.

Do Airbnb hosts need to deal with VAT?

In many cases, yes. Even if you are not a VAT payer, using Airbnb may require you to register as an Identified Person for VAT because Airbnb provides services from another EU Member State.

How do I know when I must become a VAT payer?

Monitor your annual turnover and consult an accountant or tax advisor if you are unsure. Czech VAT registration rules changed in 2025, and the applicable requirements depend on your specific circumstances.