Czech Republic: VAT and imported goods involving e-commerce transactions

Value added tax (VAT) will be collected on all import consignments—regardless of their value—beginning 1 July 2021.

VAT will be collected on all import consignments beginning 1 July 2021

Value added tax (VAT) will be collected on all import consignments—regardless of their value—beginning 1 July 2021.

Thus, when purchasing goods via e-commerce transactions from foreign entities, it will be necessary to consider whether the purchase price includes or excludes VAT. When a seller undertakes to pay VAT on import, the seller may choose to proceed under the one-stop-shop (OSS) regime—specifically, the import OSS (IOSS). Read TaxNewsFlash

Regarding an exemption from import VAT on consignments of “low value,” the simplification procedure will only be available with regard to goods having a value up to €150 and not subject to customs duty. The seller must register in the particular OSS module and obtain a tax registration number for import purposes. If not established in the EU, the supplier must appoint an intermediary. Upon import of goods into the EU, the tax registration number is then submitted (usually through a carrier) to customs administration, and VAT on import is not paid at the customs office but is declared and paid with the VAT returns filed monthly through the IOSS.

In contrast, when the price of goods purchased on an e-commerce transaction does not include import VAT, the end-customer will be responsible for paying VAT. For consignments of a low value and not subject to excise duty, certain simplifications may also apply if the transport of goods is provided by an entity holding a special permit under a special customs regime for the import of goods. The carrier will then collect the amount of VAT from the end-customer (who will not have to go through customs clearance).

Read a May 2021 report prepared by the KPMG member firm in the Czech Republic



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