Change in the procedure for VAT refunds to travellers from third countries

The “tax free” scheme under Section 84 of the VAT Act allows value added tax (VAT) to be refunded to travellers from third countries who purchase goods in the Czech Republic and take them out of the EU in their personal luggage. Although this scheme is often perceived as simple, several specific conditions must be met. If they are not complied with, the VAT cannot be refunded to the traveller and the seller cannot reclaim the tax either.

If the traveller requests a VAT refund, the seller must immediately issue the correct document at the time of sale, including the traveller’s details and the details of their travel document. These details must also be submitted electronically to the VAT refund system. If the data are not sent to the system correctly, the document is invalid and the VAT cannot be refunded. At the airport, the traveller then confirms the export of the goods via a self-service kiosk of the Czech Customs Administration.

The traveller must apply for the VAT refund no later than six months from the date of purchase. After the export of the goods from the EU has been confirmed, the seller pays the traveller an amount corresponding to the VAT. Only then may the seller claim a VAT deduction, no later than the end of the following calendar year.

The seller may decide not to use the “tax free” scheme at all. However, this decision must apply to all similar supplies in the given calendar year. If the seller opts for the “tax free” scheme, the full statutory procedure must be followed, including electronic records and linkage to the confirmation of export of the goods from the EU.

The launch of the information system for VAT refunds to travellers is planned for 1 April 2026.

If you have any questions regarding the application of this scheme or the setup of internal procedures, please do not hesitate to contact us. The PKF APOGEO Tax team is ready to provide expert support in interpreting the new legal rules.

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