Reverse Charge & “Call Off Stock” in Czech Republic

Individuals or entities engaged in the supply of goods and services in the Czech Republic are liable for Czech VAT. However, under specific circumstances, the responsibility for VAT accounting can be transferred to the customer through the reverse charge mechanism.

This approach is implemented throughout the EU, in accordance with the reverse charge provision of the EU VAT Directive.

Learn all about Reverse Charge and “Call off stock” in the Czech Republic in our comprehensive guide below.


VAT Reverse Charge in the Czech


When a taxable entity in the Czech Republic obtains services from a taxable person not established in the country, the VAT on the service must be processed using the reverse charge method, assuming the place of supply is within the Czech Republic.

Local Reverse charge

Implemented for specific domestic and international transactions involving taxable entities, the reverse charge mechanism serves as a strategy to prevent tax evasion. In this system, the seller does not levy VAT; instead, the registered buyer is responsible for reporting the relevant VAT. This applies to transactions both within the country and across borders.

The reverse charge method primarily applies to these types of domestic supplies, provided certain additional conditions are met:

  • Construction and installation materials, metals, and other commodities.
  • Gadgets such as mobile phones, game consoles, computers.
  • Greenhouse gas supplies.
  • Industrial crop commodities such as grains.
  • Immovable properties.
  • Electricity supplied to traders.
  • Electronic communication services.
  • Goods provided as security.
  • Supplies of goods following termination of the retention of title.

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Czech Republic – “Call off stock”

Call-off stock denotes items a supplier moves to a storage space or warehouse, ready for a designated customer to access at their discretion. Usually, the warehouse is under the customer’s ownership or management. In the Czech Republic, transactions involving call-off stock necessitate registration, akin to consignment stock dealings. Nevertheless, suppliers registered for call-off stock in other EU countries can employ a simplified EU-wide approach, as outlined in Article 17a of the EU VAT Directive and Article 18 of the Czech VAT Act. This approach allows them to bypass registration in the Czech Republic, and it is a standardized procedure throughout all EU Member States.


Simplifying EU’s call-off stock regime


To be eligible for the call-off stock simplification as per the VAT Directive, specific criteria must be met:


  • Both the seller and the customer must be VAT-registered entities with active VAT numbers.
  • The supplier should not have a fixed establishment in the customer’s country.
  • The supplier needs to know the customer’s identity.
  • The supplier is required to monitor the movement of goods and report this through an ECSL (European Community Sales List) return, which includes details of the transport. Depending on the volume of goods, the supplier may also need to fulfill Intrastat reporting obligations.
  • The goods must not remain in the customer’s warehouse for more than 12 months.


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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