Recently, many sellers have received notices from Amazon asking sellers to provide VAT numbers for Poland Czech Republic, otherwise it will affect the sales of the German site and close the store seriously.
According to the official news from Amazon, sellers participating in the Central Europe Program need to register for Value Added Tax (VAT) in Poland and Czech Republic. Even if the seller does not have an Amazon site in the Czech Republic and Poland, he/she must register for VAT in both countries as long as he/she participates in the Central Europe program.
What is the Central European Program?
By joining the Distribution Network Extension (Central Europe Program), sellers will be able to store their inventory in Amazon's logistics operations centers in Poland and the Czech Republic.
Sellers on Amazon Europe are often faced with large volumes of goods and insufficient warehousing. If you do not join the program, the inventory needs to be stored in the German operations center.
To join the program, sellers need to ship FBA inventory to a specified address in Germany, and then FBA will ship the inventory to Amazon's logistics centers in Germany, Poland, and the Czech Republic. There is no additional cost for this service.
What should sellers do if they receive an Amazon notification?
1. Confirm whether the product is stored in the Czech Republic.
2. If you already have a Polish-Czech tax code, you should upload it to the Amazon backend immediately.
3、If you have already sold your products in the Czech Republic or are registering your tax ID, you need to reply and make a voucher record in the back office.
Which sellers need to register for Polish Czech VAT?
1
Sellers who have opened the China-Europe program
2
Open Pan-European Program Sellers
3
Sellers who store goods in Poland/Czech Republic
What are the advantages of registering a Czech VAT site in Poland?
1. If the seller chooses to store in Germany, Poland and the Czech Republic; for each Amazon Logistics item delivered from Germany, you can save up to 0.35 EUR. Obligation to pay VAT is required in Poland and the Czech Republic.
Store only in Germany and pay an additional delivery fee of up to 0.35 for each Amazon Logistics item delivered from Germany
2、Poland station local delivery fee is lower than Germany 60%, participated in the Central Europe program for you to save costs!
3, the use of this service does not require additional fees, but also can save the FBA delivery charges in Germany site sales
Attention:
The advantage of applying for Polish and Czech VAT is that you can use the Central European scheme without worrying about rising delivery charges and compliance issues.
What are the implications of not registering?
1、Platform to check the tax is not in compliance, will limit the EU countries site sales; directly limit the store sales
2. Failure to register in the Czech Republic carries a corresponding tax penalty. Late submission or failure to register for VAT will result in penalties calculated on the basis of possible loss of income.
Do I still need to register for VAT if I have already closed the Central Europe program?
If you cancel the Central Europe Expansion Program and remove the Polish and/or Czech inventory, it does not change the fact that the inventory was previously stored, and it is also necessary to register the Polish or Czech VAT number.
Inventory in Poland Czech Republic, but no sales to Poland Czech Republic
In that case, does it mean that only the registration of the Polish Czech tax code is required?
There is no need to pay tax, is there?
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If you are only selling and shipping to other EU countries (destination countries with tax codes), you can file a return in the destination country.
Despite the fact that there are no local B2B sales in Poland and the Czech Republic, transnational B2B sales shipped from Poland/Czech Republic to other EU countries, as well as B2C sales made on a withholding basis, are still subject to a 0% tax rate in Poland/Czech Republic (although there is no tax to be paid to the local tax office).
(However, it is still necessary to make a 0-tax and 0-tax-rate sales declaration to the Inland Revenue Department (IRD) on schedule; otherwise, there is a possibility of incurring late fees and penalties, or even having the IRD's tax number canceled).
The compliance policy is getting tighter and tighter, if sellers have the need to register Poland & Czech Republic VAT number and any questions, please feel free to consult with Green Circle's dedicated account manager.
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