Accounting and Bookkeeping Services for E-commerce

Our accounting services for e-commerce encompass tax advisory, VAT registration and administrative support for the companies of non-Czech residents
E-COMMERCE TARIFF
1,000
CZK
/
45
EUR

    Price includes:

  • Preparation of VAT reports and control reporting (kontrolní hlaseni)
  • Support via e-mail

    The following services may be billed additionally:

  • Preparation of Summary reports (Souhrne hlaseni) – 1,000 CZK
  • Administrative assistance – 1,500 CZK /h
  • VAT registration procedure – 5,000 CZK
  • Preparation of Power of Attorney for the submission of VAT reports via DoMyTax Datova Schranka – 500 CZK
  • Intrastat report – 1,000 CZK.

In which situations and at what point does it become necessary for your e-commerce company to register for VAT in the Czech Republic?

  • When purchasing or transferring goods from another EU country to the Czech Republic before VAT registration: in this situation, a non-resident automatically becomes a so-called ‘Identified Person’ for the purposes of VAT (in Czech. “Identifikovaná osoba”) from the date of their first purchase / transfer of goods (§ 6g of the VAT Law). The ‘Identified Person’ is not entitled to a VAT refund from the state. That is why we recommend registering in advance, before moving your goods, as a fully-fledged (classic) VAT payer. This will allow you to take advantage of VAT refunds with every purchase. You can read more about the VAT obligations of the ‘Identified Person’ in this blog post.
  • When selling goods from a warehouse in the Czech Republic (§ 6c of the VAT Law).
  • When exceeding the limit of 1,140,000 CZK through the sale of goods from a warehouse located in another EU country to Czech citizens for their personal consumption: in this scenario, a foreign entity / individual entrepreneur becomes a classic VAT payer in the Czech Republic as soon as the first sale over the limit takes place.

Registration deadlines:

A legal entity / individual entrepreneur who is not a resident of the Czech Republic, who meets the conditions for mandatory VAT registration in the Czech Republic, has to submit an official application for VAT registration within 15 days from the day when according to the Law, they became a VAT payer in the Czech Republic (for instance, when storing goods in a warehouse in the Czech Republic, from the first sale of goods in the Czech Republic, or when exceeding the limit (1,140,000 CZK) on selling goods to citizens for their personal consumption.

What is required for VAT registration?

  • A completed application form for VAT registration in the Czech Republic should be submitted only in an electronic format (via the company's Datova Schranka mailbox or by using a special electronic signature).
  • A completed company questionnaire (with a description of the company’s activity, a detailed explanation of reasons for VAT registration in the Czech Republic and other information about the company).

Mandatory attachments to the application form for VAT registration:

  • The company’s / individual entrepreneur’s extract from the commercial register and a permit to carry out business activities (trade license). These documents must be submitted either in their original forms or as notarized copies translated into the Czech language.
  • The company’s / individual entrepreneur’s bank account information (i.e. a copy of the bank agreement or a bank statement) translated to the Czech language.
  • Confirmation of VAT registration in other countries (if such a registration is present). These documents must be submitted either in their original forms or as notarized copies translated into the Czech language.

Submission dates for VAT reports:

VAT payers or Identified persons for the purposes of VAT (identifikovaná osoba) have to submit monthly VAT reports. VAT reports should not be submitted by non-residents who do not have permanent establishments in the Czech Republic and in the case of zero business activity, a so-called ‘zero VAT report’ must be filed. The deadline for submitting such a report and the payment of tax is the 25th day of the month following the reporting one. For instance, the October VAT report should be submitted with tax paid prior to November 25th

Read more in the article.

Questions and Answers

  • After becoming a VAT payer in the Czech Republic, could I get VAT refunded on goods imported to a Czech warehouse?
    In the case of registration for VAT in the Czech Republic, when importing goods from countries outside the EU, your goods will not be subject to VAT at customs. VAT on imported goods is calculated and reflected in the VAT report and can immediately be refunded from the state.
  • What if I imported the goods to the Czech Republic before registering for VAT?
    In the event that goods are imported no later than 12 months before the date of VAT registration, the VAT payer is entitled to a VAT refund in his first VAT report on the imported but not yet sold goods.
  • I am not a Czech tax resident, although I do pay tax in the Czech Republic. Do I need to submit a zero-VAT report for those months where I do not have any sales subject to VAT?
    Non-Czech residents are not required to submit zero-VAT reports in the Czech Republic.
  • Does a non-resident have to submit a kontrolní hlášení VAT report?
    Yes, a non-resident registered as a VAT payer in the Czech Republic is obliged to submit, along with the VAT report, a monthly control report (known as kontrolní hlášení). This report should be submitted monthly by the 25th day of the month following the reporting period in an electronic format.
  • If I sell a product not to an individual, but to a legal entity in another EU country, will this sale be subject to VAT in the Czech Republic? Does an additional VAT report have to be submitted?
    If an EU-based company can present a valid VAT number, the sale will be exempt from VAT in the Czech Republic. Your invoice should contain the amount of goods not subject to Czech VAT. An additional Summary report (souhrné hlášení) should be submitted along with the standard VAT report by the 25th day of the month following the reporting period.
    In the case where the buyer does not have a valid VAT number, the goods will be sold with Czech VAT. In this case, no additional reporting is required.
  • Can I obtain a VAT refund on an invoice for advertising services provided by a Czech VAT payer?
    If you are not permanently established in the Czech Republic, in accordance with VAT Law, Czech VAT payers cannot issue an invoice for advertising services with Czech VAT, since the service is being ordered by a foreign company or individual entrepreneur. The invoice from the Czech VAT payer will show the amount excluding VAT with the comment ‘under the reverse charge mechanism’. This advertising service is subject to VAT in the country where the buyer-company is legally registered. In the Czech Republic, you do not have a branch, only a VAT number.

You may require:

  • Accounting services for your e-commerce company from 600 CZK/ 25 EURO a month
  • Tax advisory for e-commerce – from 1,500 CZK / 65 EURO a month