Are you an entrepreneur who imports goods from abroad and then sells them in the Czech Republic? We have prepared a clear summary of the information you should know about VAT and customs duties.
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VAT when purchasing goods from abroad
One of the key areas you need to know when importing goods from abroad is the payment of VAT, which differs based on whether you are trading within or outside the European Union .
Place of performance
Cross-border trade is associated with the concept of place of gambling data philippine supply , which determines in which country VAT is paid for goods. According to the VAT Act, the place of supply is where the goods are purchased by the end customer. Therefore, if you, as a Czech entrepreneur, buy goods abroad and sell them in the Czech Republic, you must pay VAT for them, in the Czech Republic.
VAT and EU countries
If you purchase goods from European Union countries and sell them in the Czech Republic, you will have to pay VAT in the Czech Republic , which is the place of performance in this case.
This is the transfer of tax liability from the supplier to the customer. The customer, or entrepreneur, who sells the goods to end customers then adds VAT to the price they charge the customer.
VAT and non-EU countries
As regards the payment of VAT in countries that are not member states the university of melbourne: a premier institution of higher learning in australia of the European Union, it does not matter whether the other party is a VAT payer or not. In the case of the purchase of goods in these countries , the place of performance is the EU Member State in whose territory the goods are located at the time they enter the EU from a third country, or the Member State in which customs measures cease to apply to the goods. This does not always have to be the Czech Republic.
When purchasing goods from an entrepreneur from a country outside the EU, you are entitled to deduct VAT on the import of goods .
How is the customs?
Similar to VAT, different conditions apply to customs duties in the case of European Union member states and non-EU countries.
This ensures not only the free movement of people, but also capital, goods and services. Therefore, if you import goods into the Czech Republic from one of the member states, you do not need a permit and you do not have to pay customs duties .
VAT -EU countries
While customs duties are not payable when purchasing goods thailand data from an EU Member State, in most cases customs duties are payable when importing goods from third countries .
The customs value therefore includes all payments, the payment of which was a condition of import and sale in the Czech Republic. These include, for example, the prices of containers and packaging or commissions and fees for mediation. The calculation of customs duty is then the product of the customs value of the goods and the customs duty rate , which is different for each good.
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Obligations when importing goods from third countries vary based on their price
Goods over 150 euros: Goods worth over 150 euros are not exempt from customs duty or VAT, with specific exceptions.
When importing goods from third countries, customs officers may also require additional documents, such as a certificate of conformity, a certificate of origin of the product, etc. The conditions vary considerably based on the type and quantity of the imported goods . To be sure that you are fulfilling all obligations, we recommend consulting with experts.
