Amazon-traders: What must be taxed in the Czech Republic?

15.9.2020

The list of transactions, that must be declared by Amazon-traders registered for VAT in the Czech Republic, follows from the Czech VAT law (or the EU VAT law). The Amazon-traders are typically involved in some transactions that are taxable in the Czech Republic and therefore they must be declared in their VAT returns there:

  1. Shipments to private customers (i. e. distance sales) that are taxable in the Czech Republic (i.e. shipments to the Czech Republic and shipments to EU countries where the Amazon-trader is not registered for VAT or where the threshold for distance sales has not yet been waived);
  2. shipments to private customers that are not taxable in the Czech Republic (i.e. shipments to EU countries where the Amazon-trader is registered for VAT and where the shipments are taxed with local VAT);

  3. FC transfers carried out to / from the Czech FBA warehouse (i.e. the movement of goods to / from the Czech Republic) and

  4. the returns/refund that relate to shipments from the Czech Republic.

The Amazon-traders should provide the tax advisor also with the description of the goods so the tax advisor can determine the correct VAT rate. The best way how to do it? The traders can download the relevant data from Amazon and provide this together with the list of their EU VAT numbers. Based on these data the tax advisor is able to determine the trader´s VAT liability in the Czech Republic.

Another obligations of Amazon-traders in the Czech Republic

The Amazon-traders registered for VAT in the Czech Republic should not forget their further obligations. They must submit together with the VAT return also the control statements and recapitulative statements. Both forms give to the Czech Tax Office the detailed overview of the local taxable transactions, transfers of goods and deliveries to another EU-countries. All these forms must be submitted electronically.

Furthermore, some more active Amazon-traders can cross the threshold for the statistical reporting – so called Intrastat. These reports must be submitted to the Czech Customs on the monthly base. The traders usually get a notice from the office in case where they crossed the threshold and they have not registered for Intrastat yet. They should be aware that the Czech Customs can asses sanctions if the Amazon-trader fails with these obligation.

The Amazon-traders do not have any obligations with regard to the income tax in the Czech Republic.

For further questions you can contact Yourtaxes.cz - your partner for VAT registration and VAT returns in the Czech Republic

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