Tax obligations and selling on Allegro.cz

VAT and VAT rates in the Czech Republic

When it comes to selling on Allegro in the Czech Republic, from a tax perspective, VAT is undoubtedly a key factor. For e-commerce sales to private individuals, as a rule, the taxation principles appropriate for the country to which the goods are shipped should be applied. Thus, sellers starting out on Allegro.cz must be prepared to apply the Czech VAT rate. This obligation arises if:

• You ship goods from Poland – and your sales to private individuals from other EU countries exceed EUR 10,000 in a given year (until the limit is exceeded, you may settle B2C sales similarly to sales to Polish customers), or
• You ship goods from within the Czech Republic.

The standard VAT rate in the Czech Republic is 21%, and more about VAT in the Czech Republic can be found in our article – VAT Czech Republic 2024.

VAT declaration deadlines in the Czech Republic

In the Czech Republic, VAT declarations and payments are made monthly, although companies that did not exceed a turnover of 10,000,000 CZK in the previous year may settle quarterly. The VAT payment deadline in this country falls on the 25th day of the month following the accounting period.

When do you need to register for VAT abroad?

Selling on Allegro.cz does not always require VAT registration in the Czech Republic. Such an obligation usually arises in two cases:

A) Operating a warehouse of goods in the Czech Republic

This is because sales of goods from Czech territory constitute local sales, which must be settled in the VAT declaration filed with the tax office in the Czech Republic. Such sales cannot be settled under the VAT OSS procedure.

In this sales model, there are no sales limits – VAT registration in the Czech Republic should be done from the moment sales begin.

B) Opting out of VAT OSS registration

The VAT OSS procedure is not mandatory. If we have exceeded the annual sales threshold of EUR 10,000, but for some reason do not want to register for the VAT OSS procedure or simply forgot to register – then VAT registration in the Czech Republic is required.

Need help with VAT or e-commerce accounting?

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VAT-OSS Registration Process

The place of VAT registration in various countries in Europe is the tax office, and the process is not standardized in terms of required documents across the entire EU.

Depending on the country, the registration process can take from 1 month to even 6-12 months in the case of Spain.

If you want to learn more about VAT registration in specific countries, check out our articles, which discuss this process in the Czech Republic, Germany, France, or the United Kingdom.

Settling in the VAT OSS procedure

If you ship goods from Poland, you can settle Czech VAT under the VAT OSS procedure. Using this tool means filing one quarterly tax declaration for all mail-order sales throughout the EU. Such a declaration is filed to the Second Tax Office Warsaw Śródmieście by the last day of the month following the quarter being settled.

The OSS VAT declaration includes:

• all Member States of consumption (reception of goods),
• VAT rates applied according to the rates of the destination country,
• tax base according to a given VAT rate,
• VAT amount.

VAT-OSS - Registration process

If you are an entrepreneur with a business registered in Poland, then VAT-OSS registration must take place in our country. Registrations are made using the VAT VIU-R form and can be submitted remotely via the e-Declarations system (a qualified electronic signature is required). The whole process is relatively quick.

For more about the VAT OSS procedure, read our article – What is VAT-OSS? If you need support with registrations, settlements, or VAT declarations or VAT OSS, schedule a consultation, indicate where the problem lies, and let our VAT Compliance specialists handle the rest!

Documenting sales – VAT OSS

With the selection of the VAT OSS procedure, questions may arise. We have provided answers to some of the most frequently asked questions below.

Is VAT-OSS sufficient for selling on Allegro in the Czech Republic?

Yes, if your products sold to Czech customers will be shipped exclusively from a warehouse in Poland. If you use warehousing services in the Czech Republic and ship orders from there to the end customer, such sales do not qualify for the OSS procedure and VAT registration in the Czech Republic will be required.

Do I need to issue invoices/receipts?

Tax regulations do not require the issuance of VAT invoices for sales settled under the VAT OSS procedure.

At the same time, if VAT OSS sales are taxable in another EU country, taxpayers are not required to maintain sales records using fiscal cash registers.

In what language and currency should the invoice be issued?

When a taxpayer settles VAT under the special (OSS) procedure, the invoicing regulations of the member state of identification apply (Poland – in the case of Polish sellers).

Polish regulations do not contain detailed guidelines regarding the currency or language in which the invoice should be issued. Therefore, the seller may decide independently on these aspects. Generally, however, the language of the customer’s country or at least English is used.

What VAT rate should be included on the invoice – Polish or Czech?

When using the VAT OSS procedure, the Czech VAT rate should be applied.

Documenting sales - Sales below the 10,000 EUR Limit

Opting for local settlements, entrepreneurs may face dilemmas related to invoicing, issuing receipts, or using fiscal cash registers. We have answered some of the most frequently asked questions below.

If I sell on a smaller scale (below the annual limit) and am not registered for VAT OSS – how do I document sales? Do I need to issue invoices and what VAT rate do I state on the invoice?

If the supplier does not use OSS (the Union scheme), then for WSTO (Intra-Community Distance Selling of Goods), an invoice must be issued in every case, and the invoicing regulations of the state where the sale is taxed apply.

Do I need to issue receipts, or can I take advantage of the exemption from using fiscal cash registers?

In this case, sales transactions are subject to the general rules regarding fiscal cash registers. However, it is possible to take advantage of an exemption for the delivery of goods in a mail-order system (by mail or courier services) if the goods supplier receives full payment for the performed service via mail, a bank, or a cooperative savings and credit union (to the taxpayer’s bank account or to the taxpayer’s account in the cooperative savings and credit union of which they are a member), and the records and evidence documenting payment clearly indicate the specific service performed and for whom it was done (buyer’s details, including their address).

It should be noted that certain groups of goods are excluded from the above exemption – including perfumes, car parts. We suggest verifying this issue with an advisor.

Allegro.cz and tax obligations - summary

Selling via Allegro.cz presents many entrepreneurs with the opportunity to establish their brand in the Czech market, thereby increasing profits. However, it is important to remember that often as a result of expansion and selling to consumers from other countries, additional tax obligations may arise.

The method of taxing sales will depend on the distribution model and the scale of sales. Therefore, before starting sales, it is advisable to verify in which situations VAT registration in other EU countries is necessary and what VAT rates should be applied. If tax obligations in other countries (e.g., the Czech Republic) are not met, sellers must be prepared for the risk of severe penalties from tax authorities.

If you are looking for support in e-commerce accounting or issues related to VAT or VAT OSS, such as registrations, declarations, or settlements in the European Union and the United Kingdom, schedule a consultation, indicate where the problem lies, and let our VAT Compliance specialists take care of your case.