E-Commerce & B2C Services in the Czech Republic

The introduction of new e-commerce regulations on July 1, 2021 with the abolishment of the intra-EU distance selling thresholds, superseded the previous distance selling framework that was in place until June 30, 2021.

Under the old system, the EU distance selling threshold for the Czech Republic was set at CZK 1,140,000.

Learn all about eCommerce and B2C services in the Czech Republic in our comprehensive guide below.


E-Commerce distance sales

in the Czech Republic

(Changes in VAT Regulations) From July 1, 2021 the following changes were implemented:

The existing threshold for intra-EU online distance sales was abolished, introducing a unified annual distance sales threshold of EUR 10,000 applicable to all EU countries. This limit applies to the total value of cross-border sales by a company throughout the EU. Therefore, businesses conducting B2C sales of goods from and to the Czech Republic exceeding this threshold are subject to the new rules.

To reduce the administrative load of registering in each EU member state, the new One-Stop-Shop (OSS) system was established for EU transactions.

Businesses registered for the OSS can manage VAT for cross-border sales by declaring and paying it in the destination country of the customer.

The OSS system is applicable to distance sales of goods shipped from one EU Member State to private consumers in another, and for the provision of VAT-exempt services to private customers in the EU Member State where the services are availed.

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Services in the Czech Republic

According to the Czech Republic’s VAT Act, specifically Article 14, services generally include any activity that does not qualify as a supply of goods. Services encompass a variety of activities, such as:


  • Disposing of intangible assets.
  • Establishing, maintaining, or terminating easements.
  • Committing to avoid specific actions or to tolerate certain conditions or situations.

For instance, services can range from transferring rights to offering food and beverages in establishments like hotels, restaurants, and cafes. It’s important to note that transferring a business as a going concern or selling personal receivables (as opposed to those bought from others) is not categorized as a service for VAT purposes.


Additionally, Article 14 defines certain activities as ‘Deemed Supplies of Services’, which include:


  • Services provided for compensation at the request of authorities or as required by law.
  • Services rendered through an agent who works on a commission basis.
  • Services provided for a fee that is unrelated to the taxable person’s economic activities.

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Digital Services in the Czech Republic

In 2019, the Czech Republic’s government sanctioned the introduction of a tax on digital services.


Digital services refer to those that are electronically stored, transmitted, and used. Consumers can access these services via email, online downloads, or website logins. These services are characterized by minimal human involvement and a significant reliance on information technology.


Examples of digital services include:


  • Electronic delivery of audio-visual products like videos, music, and movies.
  • Web hosting services, which encompass the storage and management of websites and digital content on servers.
  • Platforms-as-a-Service (PaaS), offering an online platform for software development or other internet-based services.
  • Electronically accessed and used software, including applications, programs, and digital tools.
  • Infrastructure-as-a-Service (IaaS), providing components like servers, storage, and networking facilities over the internet.
  • Online advertising and affiliate marketing, where products or services are promoted through digital channels, governed by specific digital tax policies.
General rule

 Digital services are considered to be provided in the location where the tax-free recipients, whether inside or outside the EU, are established or have their permanent residence.


The European Council Implementing Regulations have laid down guidelines to deduce the recipient’s location for ascertaining the place of supply for digital services as per EU regulations:


  • For services that require physical presence of the recipients at a specific location to be received, the supply location is deemed to be that particular place. However, if the location is on a ship, airplane, or train carrying passengers within the EU, the supply location is considered to be the country of departure.
  • In cases where services are delivered through a fixed landline, the supply location is assumed to be where the landline is installed.
  • For services provided via mobile networks, the supply location is determined by the country code of the SIM card.
  • When services require a decoder or similar device, or a viewing card, and are not provided through a fixed landline, the supply location is presumed to be where the decoder or device is located, or, if unknown, where the viewing card is sent for usage.


In all other instances, the provider should typically use two consistent indicators to determine the location of the customer’s office registration, registered domicile, or usual residence. These indicators can include:


  • The customer’s billing address.
  • IP address.
  • Location of the bank account used for payment.
  • Other relevant commercial information.


Moreover, from 1 July 2021, a unified EU-wide “One Stop Shop” (OSS) system has been in place, simplifying the registration and reporting processes for foreign e-commerce providers of goods and services, effectively replacing the MOSS scheme.



Last Updated: 06/12/2023


The information provided by Global VAT Compliance B.V. on this webpage is intended for general informational purposes only. Global VAT Compliance B.V. is not responsible for the accuracy of the information on these pages, and cannot be held liable for claims or losses deriving from the use of this information. If you wish to receive VAT related information please contact our experts at support@gvc.tax

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