Accounting and Reporting for a Czech Company (s.r.o.)

Accounting and reporting for a Czech s.r.o. means ongoing bookkeeping under the Czech Accounting Act, VAT (DPH) and corporate income tax returns, and the annual financial statements (účetní závěrka) filed with the public register. Key Solutions coordinates this work for owners from Ukraine: a Czech partner accountant keeps the books in the Czech system and files with the tax authority, while we set the tasks, control deadlines and figures, and prepare reporting for the owner.

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What Czech law requires from an s.r.o.

A Czech s.r.o. is an accounting entity under Act No. 563/1991 Coll. on Accounting and keeps full double-entry books (§ 9(1) and (4)). The books are kept in Czech; source documents in a foreign language are allowed when they are comprehensible (§ 4(13)). A company registered in Czechia follows Czech rules even when its owner and director live in Ukraine.

Tax rates and thresholds follow the laws in force on 9 October 2026: Act 563/1991 Coll., Act 235/2004 Coll., Act 586/1992 Coll., Act 280/2009 Coll..

VAT: when an s.r.o. becomes a payer and how it reports

A company seated in Czechia becomes a VAT payer from 1 January of the following year once its domestic turnover for a calendar year exceeds CZK 2,000,000 (§ 6(1), Act 235/2004 Coll.). If turnover in the current year exceeds CZK 2,536,500, the company becomes a payer from the day after that threshold is crossed (§ 6(2)). Turnover is therefore worth tracking monthly from the first invoice.

• the tax period is a calendar month; quarterly periods are possible when the previous year's turnover did not exceed CZK 15,000,000, except in the calendar year of registration and the following calendar year; the switch is notified to the tax office by the end of January (§ 99, § 99a);
• the VAT return is due within 25 days after the period ends (§ 136(4), Act 280/2009 Coll.);
• a legal entity files the control statement monthly within 25 days after the month ends, and this deadline cannot be extended (§ 101e);
• returns, control statements and EC sales lists are filed electronically only (§ 101a); an EC sales list (souhrnné hlášení) is required for supplies of goods and services to VAT payers in other EU states (§ 102).

For a Czech company with a Ukrainian owner, the typical questions are transactions with the Ukrainian LLC, services bought from abroad under reverse charge, and EU supplies. We map these flows before the first return so the books and VAT agree from month one.

When a Czech s.r.o. needs a statutory audit

The statutory audit duty is set by § 20 of Act 563/1991 Coll. Amending Act No. 316/2025 Coll. changed it from 1 January 2026: an audit is mandatory for medium and large accounting entities, and wherever a special law requires one. Small companies have no statutory audit duty under the Accounting Act for periods starting on or after 1 January 2026. The Czech Ministry of Finance explained the transition in a letter dated 4 September 2025 (Ministry of Finance position).

The category changes from the next period once the company exceeds, or stops exceeding, the limits at two consecutive balance sheet dates (§ 1e(2)). Category limits: § 1b of Act 563/1991 Coll. as currently in force.

Accounts for 2025. For accounting periods that started before 1 January 2026 the previous wording applies. A small s.r.o. needed an audit when, at the balance sheet date and in the preceding period, it reached or exceeded at least two of three values: total assets CZK 40m, net turnover CZK 80m, 50 employees. Calendar-year 2025 accounts are still tested against these criteria.

In Czechia only auditors licensed by Komora auditorů ČR and entered in its register may carry out audit work (§ 2, § 3(1) and § 11 of Act 93/2009 Coll. on Auditors). Such an auditor signs the statutory audit report of a Czech s.r.o. Key Solutions prepares the books, the document pack and explanations for the audit and coordinates the work with the Czech auditor until the accounts are published in the register.

Handing over the books of a Czech s.r.o.

A change of accountant is the most common reason clients contact us: the previous provider stopped responding, the owner cannot see the figures, or last year's accounts were never filed. We run the handover against a checklist so the new accountant starts without gaps.

• accounting books and trial balance at the handover date, the last signed účetní závěrka;
• corporate income tax and VAT returns, control statements and filing confirmations for recent periods;
• statements for all bank accounts, registers of issued and received invoices, contracts with counterparties;
• employee and payroll data, where relevant;
• a check that prior years' accounts are published in the sbírka listin;
• access to the company's data box (datová schránka) and a filing power of attorney for the new accountant.

Any discrepancies found during the handover are recorded in a separate memo with a correction plan and deadlines.

What the service includes

• diagnostics: entity category, VAT status, audit duty, state of prior years' reporting;
• setting up the books with a Czech partner accountant: chart of accounts, document flow, month-end schedule;
• control of monthly VAT returns and control statements before the filing date;
• control of the annual účetní závěrka, the corporate income tax return and publication in the sbírka listin;
• audit preparation and coordination with the Czech auditor when an audit is mandatory;
• management reporting for the owner: profit, cash flow, taxes payable;
• a financial statements pack for the Ukrainian owner's CFC report, IFRS statements or consolidation with the Ukrainian LLC on request.

How we work

1. Diagnostics. We obtain the register extract, the latest accounts and returns, and determine the company's category and obligations.
2. Accounting handover. We take over the books from the previous accountant against a checklist and record discrepancies.
3. Monthly cycle. Source documents, month-end close, VAT returns and control statements on time.
4. Annual reporting. Účetní závěrka, corporate income tax return, audit where required, publication in the register.
5. Owner reporting. Management report, CFC and consolidation pack.

Reporting for the owner in Ukraine

For an owner who is a Ukrainian tax resident, a Czech s.r.o. is often a controlled foreign company: a stake above 50%, or above 10% where Ukrainian residents together hold 50% or more (subpar. 39-2.1.2 of the Tax Code of Ukraine). The CFC report must be accompanied by certified copies of the company's financial statements (subpar. 39-2.5.2), so the Czech účetní závěrka is needed in Ukraine as well. We prepare the statements and the CFC pack together with our financial reporting for foreign companies service, and the CFC report and the owner's tax calculation are handled by crystal.tax, a group company.

Registration, address and residence — through other group companies

Registration of an s.r.o., a registered address, changes of director or members, and a separate assessment of a business visa are arranged by INNOVA Consulting Group; see company services in Czechia by INNOVA. Registering a company does not by itself give the owner a right to live in Czechia. Key Solutions comes in once the company exists or is being registered and is responsible for accounting and reporting.

What we need from you

• company name and IČO, or the planned registration date;
• the latest annual accounts and tax returns, if the company is already trading;
• bank statements and a list of main counterparties;
• contact details of the previous accountant for the handover;
• the list of owners and their tax residence for the CFC pack.

We accept documents electronically. We never ask for banking passwords.

Result

• the Czech s.r.o.'s books are closed monthly, VAT returns and control statements filed on time;
• the annual účetní závěrka and corporate income tax return filed, and the accounts published in the sbírka listin;
• an audit report where the company falls under the statutory audit duty;
• a management report and CFC pack for the owner;
• a calendar of deadlines for the next year.

Legal basis

Why Key Solutions

Company

ТОВ «АУДИТОРСЬКА ФІРМА «КЕЙ СОЛЮШНЗ», a Ukrainian limited liability company, EDRPOU code 39610085, registered on 30.01.2015.

Roles

Czech bookkeeping and filing — a Czech partner accountant; audit — a Czech auditor in the register of Komora auditorů ČR; coordination, control and owner reporting — Key Solutions.

Group

We are part of Innova Consulting Group: company registration and corporate changes in Czechia — INNOVA, owner taxes and CFC — crystal.tax, legal matters — legal.ua.

Contract

Scope, deadlines, liability and confidentiality are fixed in a contract before work starts.

FAQ

Related services

• Financial reporting for foreign companies
• IFRS financial statements
• Mandatory audit of financial statements
• Accounting for importers and foreign trade
• Accounting services for LLCs