Czech Republic Issues Release on New EU VAT Rules on E-Commerce

The Czech Financial Administration has issued a release on the implementation of new EU VAT rules on e-commerce in the Czech Republic with effect from 1 July 2021. This includes:

• New rules for distance sales in the EU, including the removal of prior distance sales thresholds of EUR 35,000 and EUR 100,000 and the introduction of a single threshold of EUR 10,000 for small-scale businesses;
• The extension of the One Stop Shop for compliance with VAT obligation in the EU and the introduction of the Import One Stop Shop;
• The introduction of new rules for goods sold via digital platforms; and
• The repeal of the EUR 22 low-value goods threshold for the exemption of imports of goods.

The release note that although the required amendments to the VAT have not yet been approved due to delays in the legislative process, taxpayers can proceed according to the EU VAT Directive from 1 July 2021.

Source Orbitax

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