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Czech Republic: Proposal for VAT on mail-order goods

Czech Republic: Proposal for VAT on mail-order goods

A draft amendment to the Czech value added tax (VAT) law would impose VAT on sales of goods by mail order.

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The proposal would affect cross-border e-commerce, and basically reflects the EU law under which, effective 2021, a special “mini-one-stop-shop” (MOSS) regime applies to the sale of goods by mail order. The Czech proposal would be intended to implement these rules. Applicability of the MOSS regime would be significantly extended, involving not only digital services but also distance sales of goods and imports of low-value goods (with a maximum value of €150) including sales via internet interfaces and platforms.

Under the Czech proposal, mail-order sales would be taxed in the recipient’s country, potentially excepting small businesses. For harmonisation purposes, the exemption from VAT on the import of low-value shipments would be repealed. In addition, new VAT liability would be imposed for internet platforms.

Read a May 2020 report prepared by the KPMG member firm in the Czech Republic

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