The amendment to the VAT Act in Czechia takes effect on 1 October 2021

As of October 1, 2021, there is an amendment to the Value Added Tax Act, which focuses mainly on new rules in the area of ​​electronic commerce and the introduction of the One Stop Shop system. These changes mainly affect sellers of goods making cross-border sales to final consumers (eg. e-shops), digital platforms or importers of goods from a third country.

Act No. 355/2021 Coll., Amending Act No. 235/2004 Coll., On value added tax, as amended, and Act No. 242/2016 Coll., The Customs Act, as amended, is available in the Collection of Laws.

The amendment to the VAT Act contains in particular the following changes:

• taxation on the shipment of goods (now the so-called distance sale of goods) between EU Member States

on the abolition of limits of EUR 35,000 or EUR 100,000 for the shipment of goods from the Czech Republic to the EU

on the abolition of the limit of CZK 1,140,000 for sending goods from the EU to the Czech Republic

introducing a limit of EUR 10 000

• abolition of the tax exemption for imports of goods with an intrinsic value not exceeding EUR 22 from a third country
• delivery of goods facilitated by the operator of the electronic interface (digital platform)
• extension of the special mode of one administrative place (One Stop Shop).

More detailed information on changes in the VAT Act is available in the article New VAT Rules from 1 July 2021 and on the pages for the special regime of one administrative place (One Stop Shop).