VAT amendment from 2027 before Chamber of Deputies: ViDA package and call-off stock arrangements
From January 2027, the VAT Act is set to undergo changes related to the EU VAT in the Digital Age (ViDA) package. The amendment is primarily intended to extend and clarify the rules governing the One Stop Shop (OSS) scheme, reduce the need for VAT registrations in other EU member states, and align Czech legislation with amendments to the EU VAT Directive.
The government bill amending the VAT Act passed its first reading in the Chamber of Deputies in July. Most changes are scheduled to take effect on 1 January 2027. The bill also includes changes to the call-off stock arrangements, which are proposed to take effect on 1 July 2028.
Changes from 1 January 2027
The One Stop Shop (OSS) scheme will be extended to cross-border supplies of energy. For the purposes of the Union scheme, cross-border supplies of electricity, gas, heating or cooling through systems or networks to certain final customers will be treated as intra-Community distance sales of goods. Subject to the applicable conditions, suppliers will therefore be able to declare and pay VAT through OSS instead of registering for VAT in each EU member state of consumption. The change may be particularly significant for operators of cross-border charging infrastructure.
OSS registration will have the effect that the supply will be taxed in the EU member state of the customer. Currently, businesses supplying certain services or making intra-Community distance sales of goods to customers in other EU member states may, subject to certain conditions, still choose to declare and pay VAT in the EU member state of their establishment if they do not exceed the EU-wide threshold of EUR 10,000. From 2027, however, registration for OSS should automatically mean that these transactions shall be taxed in the customer’s EU member state. In other words, a business that opts to use OSS will no longer be able to tax those transactions in the EU member state of its establishment.
For services reported under the Union or the non-Union scheme, the date of taxable supply will be the date on which the service is supplied, irrespective of whether a VAT invoice is issued earlier. Businesses using OSS should therefore review the configuration of their invoicing and accounting systems.
The deemed supplier concept will also be extended. For certain supplies of goods by non-EU suppliers, an electronic platform will be responsible for accounting for and paying VAT not only on sales to consumers but also on sales to certain other customers, such as some small businesses that are not registered for VAT.
Changes from 1 July 2028
The existing call-off stock simplification will be abolished. The current rules will, however, remain available on a transitional basis until 30 June 2029 for goods whose transport to the destination EU member state is completed by 30 June 2028. A new special OSS scheme for transfers of own goods, which will replace the call-off stock simplification, will be addressed in a subsequent amendment. Businesses using call-off stock arrangements should therefore review their warehousing models and related VAT registration obligations in good time.