E-commerce VAT Act amendment came into force on 1 October 2021

We would like to inform you that on 30 September 2021, an amendment to the VAT Act was published in the Collection of Laws, which concerns electronic commerce (e-commerce), and came into force on 1 October 2021.

The amendment contains the following changes:

  •  Distance selling of goods between the EU Member States:
    • abolition of the €35,000 or €100,000 limits for sending goods from the Czech Republic to the EU,
    • abolition of the limit of EUR 1 140 000 for sending goods from the EU to the Czech Republic,
    • introduction of a limit of EUR 10 000,
  • Extension of the special VAT regime –  One Stop Shop (OSS),
  • Trading of goods using an electronic interface (digital platform),
  • Abolition of the tax exemption for imports of goods with an own value not exceeding EUR 22 from a third country.

The amendment was originally scheduled to come into force on 1 July 2021, but due to delays in the legislative process, the changes mentioned in the Directive were not reflected in the VAT Act on 1 July 2021. For this reason, it was still possible to proceed either (i) according to the still effective text of the VAT Act or (ii) voluntarily to take advantage of the direct effect of the amendment to the European VAT Directive, which already took into account the changes transposed in the amendment.

As of 1 October 2021, given the entry into force of the amendment to the VAT Act with the transposed changes, it is already necessary to comply with the new rules.

Štěpán Hrubý
Tax Manager

Zuzana Studničková
Senior Tax Consultant

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