The simplification rule for the consignment stock is regulated by the Article 16 (4) of the Czech VAT Act. According to this regulation, the acquisition of goods from another EU Member State by a tax payer shall also mean the relocation of goods from another Member State to the Czech Republic, by a person that is registered for tax in another Member State and is neither an exempt person nor a payer, for the purposes of subsequently delivering the goods to the acquirer in this country.
As a consequence of this rule, it is the Czech customer of an EU-supplier who declares the Intra-Community acquisition (IC-acquisition) at the moment in which the goods are transferred to the consignment warehouse in the Czech Republic. The EU-supplier does not have to make the VAT registration in the Czech Republic.
In practice, the implementation of this rule is conditioned as follows:
Usage of the simplification rule is based on the acceptance of the Czech customer and on the fulfillment of the above mentioned conditions.
What are the essential information that every tax invoice must contain according to the Czech VAT Act?
Czech VAT is generally due on a supply of goods or services with the place of supply in the Czech Republic carried on by a taxable person in the course of economic activities. The taxable supply usually means goods or services provided for a consideration.
The simplification rule for the consignment stock (called as "Call of Stock") can be applied in the Czech Republic. However, there are several conditions that must be fulfiled for it.