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.
Yourtaxes.cz - VAT partner for your consignment stock in the Czech Republic or Slovakia
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.