📊 Tax & VAT

Using a Czech s.r.o. for EU Distance Selling: VAT, OSS & the €10,000 Threshold

Updated: 2026-06-02 · Tax year 2026. This article is general and informational. EU VAT rules for cross-border sales are complex; consult a qualified tax adviser for your specific situation.

If you run an online store, sell on Amazon, or operate a SaaS product with customers across Europe, choosing the right legal entity — and understanding your VAT obligations — is not optional. A Czech s.r.o. (společnost s ručením omezeným) is a popular choice for non-resident founders precisely because it sits inside the EU, giving you access to the EU OSS (One Stop Shop) scheme from day one.

This guide explains how the EU distance-selling VAT framework works for a Czech company, when the €10,000 threshold triggers OSS registration, and why one quarterly return can replace dozens of local registrations across the EU.

What Is Distance Selling Under EU VAT Law?

Intra-EU distance selling (formerly called “distance sales of goods”) occurs when a VAT-registered business in one EU member state sells physical goods to a private consumer (B2C) in another EU member state. The key word is B2C — business-to-consumer. B2B sales follow different rules (reverse charge).

Examples covered:

• A Czech s.r.o. ships products from a Czech warehouse to a German consumer.
• An Amazon FBA seller using Czech fulfilment sells to a French buyer.
• A Shopify store registered in Prague ships to customers across the EU.

Before July 2021, each EU country had its own threshold (e.g., Germany €100,000, France €35,000). Those country thresholds were abolished. Today, a single EU-wide rule applies.

The €10,000 EU-Wide Threshold

Since 1 July 2021, the rule is simple:

• Below €10,000 in total net cross-border B2C sales per calendar year across all EU countries: your Czech VAT rate (21% standard / 12% reduced) applies to all EU sales. No OSS needed, though you may opt in voluntarily.
• Above €10,000: the VAT rate of the customer’s country applies from the sale that crosses the threshold. You must either register for OSS or obtain individual VAT numbers in each destination country.

The €10,000 figure is cumulative — it is not €10,000 per destination country but €10,000 in total eligible EU cross-border B2C turnover. Once you are established in two or more EU member states, the threshold no longer applies and you must use OSS from the first euro of cross-border sales.

What counts towards the threshold?

• Distance sales of goods from the Czech Republic to consumers in other EU states.
• Electronically supplied services (digital downloads, SaaS subscriptions, streaming) sold B2C to EU consumers.

The OSS Scheme: One Return, 27 Countries

The Union OSS scheme lets a Czech s.r.o. report and pay VAT for all intra-EU B2C sales through a single quarterly return filed with the Czech tax authority (Finanční úřad). Instead of registering for VAT in France, Germany, Italy, Spain and every other country where you have customers, you:

1. Register for OSS once via the Czech tax portal (using your company’s datová schránka).
2. Apply each destination country’s VAT rate on the relevant sales (the OSS portal helps with rate tables).
3. File a single quarterly OSS return and pay the total amount to the Czech tax authority.
4. The Czech authority distributes the VAT to each EU member state on your behalf.

What OSS does — and does not — cover

Covered by OSS	Not covered by OSS
Intra-EU distance sales of goods	Sales from non-Czech EU warehouses (Amazon pan-EU FBA may need local registrations)
Electronically supplied services (B2C)	Domestic Czech VAT on Czech sales
Telecom, broadcasting, e-services	Import of goods from outside the EU (use IOSS instead)

Important: OSS does not replace your standard Czech VAT registration. You still need a Czech DIČ for domestic sales, the kontrolní hlášení (VAT control statement) and regular Czech VAT returns.

Amazon Sellers: Key Caveat

Amazon’s pan-European FBA programme redistributes inventory across EU warehouses. Once stock is stored in Germany or Poland, separate VAT obligations may arise in those countries regardless of where your s.r.o. is registered. OSS works cleanly when goods ship from Czechia; always verify the implications before enrolling in pan-EU FBA.

Step-by-Step: Registering for OSS in the Czech Republic

1. Ensure your Czech s.r.o. is already VAT-registered (plátce DPH) or file for registration simultaneously.
2. Log in to the Czech tax portal via your company’s datová schránka.
3. Submit the OSS registration application — your effective date can be the first day of the following quarter (or the day you exceeded the €10,000 threshold, if you were already above it).
4. You will receive confirmation and an OSS identifier (your Czech DIČ prefixed “EU” for the OSS system).
5. From the registration date, track sales by destination country and apply local VAT rates.
6. File quarterly OSS returns and make payments by the 30th day after each quarter end.

Czech Domestic VAT Thresholds (Quick Reminder)

For completeness — these apply to your Czech domestic turnover, independently of OSS:

• CZK 2,000,000 in Czech-taxable turnover per calendar year: mandatory registration from 1 January of the following year.
• CZK 2,536,500 (approximately €100,000): immediate mandatory registration from the day you exceed the limit.

See our Czech Republic VAT Guide for a full breakdown of Czech domestic VAT obligations.

Why a Czech s.r.o. Makes Sense for EU E-Commerce

• EU VAT base: OSS registration, EU customs union membership, intra-EU VAT logistics.
• CZK 1 minimum share capital: low barrier to formation.
• Competitive corporate tax: 21% on profits, with proper deductions for business costs.
• Central location: Czech warehousing and logistics are well-developed and cost-effective relative to Western Europe.

Our Czech company for e-commerce and Amazon page explains the full formation and compliance picture for online sellers.

Once your company is up and running, our accounting services cover OSS return preparation, Czech VAT filings, and the kontrolní hlášení — so you can focus on sales.

You can also use our VAT calculator to estimate Czech VAT amounts instantly.

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Sources: EU VAT One Stop Shop — European Commission; Finanční správa ČR — DPH information; zákon č. 235/2004 Sb.; amavat — OSS threshold explained.