Rules of taxation in Czechia ― general information for sellers

If you sell goods or services in Czechia as part of your business, you must generally:

• register your business for VAT purposes in Czechia or in your home country
• account for VAT on your sales, adding VAT to each transaction, especially if the goods or services are sold to consumers
• apply the appropriate VAT rate
• settle the tax ― submit the appropriate tax declaration and pay the resulting VAT amount.

In accordance with the regulations, we do not settle VAT on sales carried out on our platform if your company's seat or permanent place of business is located within the EU territory. In this case, you must settle VAT on your own, at the correct tax rate, regardless of the VAT rate you have declared to us.

To correctly settle VAT, you need to know:

• what the subject of your sale is ― you need to know whether you sell goods, services, or other benefits that are outside the scope of VAT
• in which country VAT is due (for example, in Czechia)
• what the correct VAT rate is
• how much VAT you have to pay and how to do it.

When we settle VAT on transactions on Allegro

From July 1, 2021, we settle VAT on some so-called B2C (business to client) transactions carried out on our platform by sellers from outside the European Union ― sellers who:

• are not based in the EU or do not have a permanent place of business, and
• ship goods located and marketed in the EU to consumers in the EU.

In such cases, we are obliged to:

• determine the correct VAT rate for the goods or services
• collect VAT on the transaction, and
• pay the VAT to the tax authorities.

We may also be required to collect VAT for certain B2C transactions involving services ― this mainly applies to the sales of electronic services.

When you settle VAT on your transactions on your own

You calculate, declare at the correct rate, and pay VAT to the tax authorities if:

• you are a seller with a seat or permanent place of business in the European Union, for example, in Poland
• you carry out sales as part of your business activity, which means that you are acting as a VAT payer
• the transaction is subject to VAT in the European Union, for example, in Poland or Czechia.

This applies to both B2C and B2B transactions.

For whom VAT rates or other tax parameters on the platform may be relevant

VAT rates and other tax parameters may be relevant:

• for sellers from outside the European Union whose sales are subject to the solutions of the so-called e-Commerce VAT Package, and, consequently, Allegro is obliged to settle VAT on such sales ― in the case of allegro.pl and allegro.cz
• for sellers interested in conducting B2B sales within Allegro Business ― in the case of allegro.pl.

Sellers from the European Union, for example, from Poland, do not have to declare VAT rates, but they can do so for the needs of Allegro Business.

Sellers may voluntarily:

• declare the right to apply a reduced VAT rate to individual offers
• specify whether the subject of the offer is a service or goods
• declare grounds for excluding the offer from the so-called eCommerce VAT Package.

Note that you are most likely selling goods or services that are subject to the standard 21% tax rate in Czechia.

In the case of sellers from outside the European Union who have not declared the VAT rate for the purposes of eCommerce VAT settlement, we assume that the goods covered by the basic rate (21% in Czechia) are the subject of the sale.

How goods and services are defined in Czechia

In Czechia, goods are defined as tangible objects (except money and securities). These also include: building permits, live animals, gas, or electricity.

Goods in Czechia are, for example, books, clothes, toys, household appliances, gas.

Learn more about taxation of goods in Czechia .

Services are defined in Czechia as each provision that cannot be categorized as delivery of goods.

Examples: software licenses, sales of access (subscriptions) to music and entertainment platforms, sales of licenses, game accounts, transport, food and catering services, consulting and accounting services, and so on.

Learn more about taxation of services in Czechia .

Some services are not subject to VAT as goods or services.

VAT rates in Czechia

The following VAT rates apply in Czechia:

• 21% ― the basic rate applicable to most benefits
• reduced rates — strictly defined in Czech regulations:

  • 12%
  • 0%

• VAT exemption.

You can check the rates applicable in Czechia in the EU VAT rate search engine.

VAT rate 0%

We do not enable the declaring a 0% VAT rate in relation to:

• individual transactions — for technological reasons, on Allegro you can declare the 0% rate by declaring the VAT exemption for the given goods
• ICS transactions (understood as deliveries from one EU country to another as part of a B2B transaction), regardless of the type of goods.

If you want to apply the 0% VAT rate for ICS on your own, confirm the conditions necessary to declare the transaction as ICS and the possibility of taxing it at the 0% rate.

Additional information

Check our guidebook on VAT classification on products sold in Czechia.