Have you already registered for the so-called One-stop-shop or are you expecting to do so shortly? Read below what you will have to report as part of the OSS regime or what the payment format should look like when paying tax.
And if you have not been through the process of OSS registration yet although you are impacted by these obligations and have already realized sales of goods remotely to another EU state during the course of July („sales of goods remotely“ is a new legislative term for what would commonly be referred to as mail order business), don’t forget that you should do so by 10 August 2021 at the latest.
Tax return in OSS format
A tax return is to be filed on a quarterly basis, solely within the authenticated part of a tax portal, through the EPO environment. We have tested the digital form and this is our practical experience:
Form contains individual rows, each with a number of fields. The first field should identify the vendor’s TIN i.e. taxpayer filling in the tax return, and is filled in automatically. The following fields contain the following:
- EU state to which the supply was made;
- Whether the supply involved sales of goods or services;
- You determine whether the goods or services qualify for standard or reduced VAT rate (rate percentage is then added automatically);
- The last field indicates the total value of supplies in EUR (price excluding VAT);
- If currency other than EUR was used, conversion is made using an exchange rate of the European Central Bank valid for the last day of the taxable period;
- The total amount of VAT is calculated by the application automatically.
If goods were consigned from a different EU member state than the Czech Republic, they should be stated on a separate row.
The following page of the form serves to input corrections relating to prior tax periods. It should contain only the total amount of VAT separately for each EU member state and tax period.
The last page of the form displays the total summary of all sales made and payment instructions.
How to pay tax
Tax in OSS regime will be paid in EUR with one amount to the account of the Tax authority for South Moravian region:
- Bank account: 34534-177653621/0710
- IBAN: CZ55 0710 0345 3401 7765 3621
- BIC: CNBACZPP
“Note to payee” should contain the so-called reference number in the following format: CZ/Vendor’s TIN/Q3.2021.
OSS access for colleagues
If you have already registered your company for OSS regime and are looking for ways to delegate the filing of a tax return to your colleagues, you should provide the relevant authorization to the designated person. It needs to be sent to the tax administrator, ideally directly to the tax authority for South Moravian region, locally competent office of Brno 1, which handles OSS administration. The authorization can be sent through a data box.
The authorized person e.g. internal accountant (employee) has to have e.g. bank identity or other means of digital identification. After logging in the tax portal through an accepted means of digital communication, they can fill in an access request.
Effective date of VAT Act amendment implementing OSS
You may have noticed that, although the OSS go-live date was set to be 1 July 2021 for the entire EU, the VAT Act amendment that was supposed to implement the EU-wide law, has been delayed in the legislative process and its final entry into force was expected during the course of July 2021.
Now it is already clear that this will not happen. The amendment has been returned by the Senate to the Parliament, which will have to discuss it further in August or even in September. However, modifications suggested by the Senate are insignificant for daily practice from the point of view of the EU-wide law.
Even though the VAT Act Amendment has been severely delayed, individual VAT payers can already apply the new OSS rules as of 1 July 2021 thanks to the direct effect of European law and can thus avoid potential VAT double taxation.
If you are unsure as to how the new OSS rules and regulations should be applied, do not hesitate to contact us, we will be happy to assist you.