VAT
VAT for E-shops and the OSS Scheme: Cross-Border Sales Without Errors
· 3 min read
Do you sell to end consumers in other EU Member States? Once you exceed the threshold, you must pay tax in the customer's country. The One Stop Shop (OSS) scheme solves this with a single return.
Threshold for cross-border sales
Once you exceed the combined threshold for distance sales of goods to the EU, the place of supply moves to the customer's Member State. You must therefore apply the customer's domestic VAT rate.
How One Stop Shop works
Instead of registering for VAT in every individual Member State, you submit a single quarterly tax return in Czechia, and Finanční správa (Czech Tax Administration) distributes the collected tax. This saves dozens of administrative hours as well as the cost of foreign tax advisors.
What to watch out for in your records
Your e-shop must correctly distinguish VAT rates by country and retain evidence proving the customer's location. Integrating your accounting system directly with your e-commerce platform automates this process.
Author: FinTaxo expert team
Operated by: Zaklipso s.r.o.
Czech original: read this article in Czech
This article is general information and does not replace individual tax, accounting or legal advice. Czech legislation changes frequently — verify the current wording or discuss your situation with us before acting on it.
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