A new draft VAT Act, submitted to Parliament under No. 318/26, is expected to take effect primarily from 1 January 2027, with certain provisions taking effect from 1 July 2028. The main objective is to implement selected provisions of the VAT in the Digital Age Directive (so-called ViDA), which is intended to bring simplification and greater precision to certain rules for cross-border trade within the EU.
In addition to introducing certain clarifications of the conditions for applying the One-Stop Shop scheme (the “OSS scheme”), the amendment allows the OSS scheme to be used for cross-border supplies of goods via systems or networks (typically the charging of electric vehicles) and at the same time expands the range of supplies to which the scheme will apply, including, for simplification purposes, certain types of so-called B2B transactions (i.e. transactions with taxable persons, in other words business entities). Until now, the scheme could only be applied to so-called B2C supplies, i.e. supplies to non-taxable persons – end customers. Another significant change is the abolition of the call-off stock regime as of 30 June 2028, which will subsequently be replaced by a new special regime for the movement of own goods from 1 July 2028 (this latter regime is expected to be included in the next amendment to the VAT Act).
New concept of cross-border supplies of goods via systems and networks (gas, electricity, heating and cooling)
A new legal fiction is being introduced under which a cross-border supply of goods via systems or networks to a person who is not a trader will, subject to the fulfilment of specific conditions, be treated as a distance sale of goods. This proposed measure responds to practical issues arising under the current legislation, typically in the case of electricity supplies for electric vehicles via charging networks. Under the existing rules, each seller is required to register for VAT and account for VAT in every EU Member State to which the goods are supplied or in which they are consumed, unless the recipient is liable to account for VAT in that state. This creates an increased administrative burden, particularly for entities operating cross-border charging infrastructure or other forms of supply of goods via systems or networks. As this type of supply will newly be treated as a distance sale of goods, the supplier will be able to apply the OSS scheme and will no longer be required to register in each Member State of consumption.
It should also be noted that this is a temporary solution pending more comprehensive changes that will take effect from 1 July 2028 as part of the VAT in the Digital Age package. At that point, the supply of gas, electricity, heating and cooling is expected to become directly included within the OSS scheme.
Date of supply of services under the OSS scheme
The rules for determining the date of taxable supply (the “date of supply”) for services covered by the OSS scheme will be unified. Until now, in the Czech Republic, the general rule under Section 21(3) of the VAT Act has applied. According to this rule, the date of supply occurs on the date the service is provided or the date the tax document is issued, whichever is earlier. As the determination of the date of supply by reference to the date of issuance of the document is an optional rule under the VAT Directive, its inconsistent application has caused issues for certain supplies within the OSS scheme. While invoicing rules under OSS follow the rules of the Member State of identification, the rules for determining the tax (including the date of supply) follow the rules of the Member State of consumption, which in practice may lead to different dates of supply depending on differing national legislation.
To avoid these issues, a single rule will now apply for services covered by the OSS scheme, under which the date of supply will always be the date the service is provided.
Supply of goods facilitated by an electronic interface operator
The obligation for the operator of an electronic interface (platform) to account for VAT will be extended to cases where the customer is a taxable person for whom the acquisition of goods from another Member State is not subject to VAT. In practice, this rule should operate in such a way that if the platform operator does not receive a valid VAT identification number from the customer, and it is not otherwise known from available sources, the operator will be deemed to be the supplier for that transaction with an obligation to account for VAT, and may apply the OSS scheme.
The purpose of this measure is to avoid practical issues arising from inaccurate or impossible distinctions between non-taxable persons (end customers) and taxable persons.
Abolition of the call-off stock regime
The call-off stock regime was only a temporary measure aimed at reducing the administrative burden associated with multiple VAT registrations when goods are moved within the EU. It will be possible to start using this regime for the last time until 30 June 2028, with the deadline for the supply of goods running no later than 30 June 2029, when the regime will be definitively terminated. Instead, from 1 July 2028, the introduction of a similar special regime for the movement of own goods is envisaged in order to ensure a smooth transition between the two regimes.
This text was translated by AI.
