VAT Act Amendments Simplify EU Cross-Border Trade and OSS Rules

• A draft VAT Act amendment (effective mostly Jan 1, 2027, with some parts from Jul 1, 2028) implements parts of the EU’s ViDA package to simplify cross-border EU trade.
• It expands the OSS scheme, including some B2B transactions and cross-border supplies through systems/networks such as EV charging, reducing the need for VAT registrations in multiple Member States.
• Cross-border supplies of gas, electricity, heating, and cooling to non-taxpayers will be treated as distance sales, with OSS usable as a temporary simplification until broader rules take effect in 2028.
• Call-off stock rules will be abolished as of Jun 30, 2028 and replaced by a new special scheme for transfers of own goods starting Jul 1, 2028.
• The amendment also unifies the timing rules for determining the supply date for services under the OSS scheme.

Source: grantthornton.cz

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Czech Republic ViDA Implementation Bill: What Businesses Need to Know

• The Czech Republic has submitted a new bill (No. 318/26) to implement the EU’s VAT in the Digital Age (ViDA) initiative, aiming to align national VAT rules with broader EU digital VAT reform, with an expected effective date of January 1, 2027.
• Key changes introduced by the bill include expanding VAT liability for digital platforms under the deemed supplier regime, clarifying One Stop Shop (OSS) reporting and place-of-supply rules, allowing cross-border energy supplies to be treated as distance sales via OSS, and repealing the call-off stock regime.
• Businesses, especially those selling through digital platforms, using OSS, supplying energy, or moving goods within the EU, should review their VAT processes and prepare for these changes, as European VAT compliance is becoming more digital and closely monitored.

Source Safari Star

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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