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.
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.
To be eligible for the call-off stock simplification as per the VAT Directive, specific criteria must be met:
Last Updated: 06/12/2023
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