Getting VAT registered in the Czech Republic for the e-commerce

The Czech Republic's e-commerce market is expanding, giving online enterprises the chance to reach a sizable and expanding consumer base. Businesses operating in the country may become more credible and competitive by registering for VAT, which also makes tax collection easier.

You must register for VAT in the Czech Republic if any of the following conditions are met:

• Storing goods in an EU-country requires you to register for VAT in that country.
• The VAT registration limit for Czech companies is 2 000 000 CZK in 12 consecutive months.
• No matter if the storage happens independently or via a fulfillment provider that stores products in warehouses in Austria, the seller himself is responsible for the VAT registration.
• In some cases, the subsequent filing of VAT returns and tax declarations is also necessary.

Furthermore, you are exceeding the EU-wide distance selling threshold by selling products to Czech end users:

• If your distance sales across the EU exceed the new €10.000 threshold, you must register for VAT in the EU-countries to which you are selling beginning in July 2021.
• Distance sales below that threshold don’t require an additional VAT registration.
• The same applies to businesses registered for OSS, since goods need to be taxed at country-specific VAT rates in that case.