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:
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.
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.
Similar obligations as Amazon traders have also another traders using the warehouses of About You, Zalando etc.
From January 1, 2024, a number of significant changes will take place in the Czech tax system - the corporate tax rate will increase, VAT rates will change and, last but not least, the tax burden on natural persons will also increase.
In addition to changes in the area of corporate income tax, the Czech Ministry of Finance is preparing to adjust VAT rates. VAT rates should change from January 1, 2024.
The Czech Republic is planning extensive changes to its tax system, including changes to corporate income tax rates, effective from the beginning of 2024, which should help reduce the state budget deficit.