Czech Republic 2021 VAT IOSS Intermediary
- Sep 2, 2020 | Richard Asquith
The Czech Republic has approved implementation legislation for the EU ecommerce VAT package for 1 July 2021.
The new rules include the requirement for non-EU sellers to appoint a Czech Intermediary if they are registering for the new One Stop Shop (OSS) single EU VAT return or the Import One Stop Shop (IOSS) return. An intermediary is similar to a Fiscal Representative. They share the responsibility of their client for the correct calculation and reporting of VAT. Failure to do so would make the Intermediary potentially liable to any missing or underdeclared VAT.
The Czech Republic does not require non-EU businesses to appoint a Fiscal Representative for regular VAT registrations. It is imposing the Intermediary obligations in line with the ecommerce package obligations only.
Non-EU marketplaces that are reporting their deemed supplier transactions via an OSS or IOSS under the 2021ecommerce package.