Overview

The EU's One Stop Shop (OSS) scheme comes with strict legal obligations established by EU VAT legislation and enforced by national tax authorities. Businesses using OSS must follow these rules to remain compliant.

This article explains your legal responsibilities under OSS and what is required from you as a registered OSS participant in the Czech Republic.

⚖️ Your Legal Obligations Under EU OSS Rules

OSS participants must follow the compliance framework established by the EU VAT Directive (Council Directive 2006/112/EC), Council Directive (EU) 2017/2455 and the relevant implementing regulations, including Council Implementing Regulation (EU) No 282/2011, as amended.

Below are the key obligations for Czech OSS users.

1. File Your OSS Return Every Quarter

You are legally required to:

• Submit an OSS VAT return every quarter while your registration is active, even if no reportable sales were made (nil return required).
• Submit the return by the official EU deadline for your Czech OSS registration.

OSS filing deadlines

OSS deadlines are not extended when they fall on a weekend or public holiday.

Failure to file on time may result in:

• Penalties
• Compliance reminders or further action
• Exclusion from the OSS scheme in cases of persistent non-compliance

Czech context: OSS returns are submitted electronically through the Czech Financial Administration (Finanční správa České republiky), using its designated OSS system.

2. Pay the VAT Declared in Your OSS Return

The VAT due in your OSS return must be paid in full and on time to the Czech tax authority administering your OSS registration.

Late payment may result in:

• Interest charges
• Additional penalties
• Enforcement measures under the applicable national rules

Czech context: OSS payments are made in EUR to the designated account administered by the Czech Financial Administration.

Payments must include the correct OSS payment reference so they can be allocated to the relevant return.

Domestic Czech VAT and OSS VAT payments must be kept separate.

3. Keep Complete and Accurate Records for 10 Years

EU law requires OSS users to:

• Keep records of all transactions reported under OSS for 10 years, calculated from the end of the year in which the transaction took place.
• Make these records available electronically to the relevant EU tax authorities upon request.

Depending on the transaction, records must include:

• Member State of Consumption
• Type and description of goods or services supplied
• Date and value of the transaction
• VAT rate applied
• VAT amount payable
• Evidence used to determine customer location, where required
• Payment information
• Relevant marketplace or platform information, where applicable

Records must be sufficiently detailed to allow the tax authorities to verify that the VAT declared is correct.

4. Provide Accurate, Complete Transaction Data

You must ensure:

• All transactions reportable under your OSS registration are included.
• The correct VAT rates are applied for each Member State of Consumption.
• Customer location and transaction values are correctly identified.
• Uploaded data is accurate, complete and free from gaps.
• Corrections are made where errors are identified.

Incorrect or missing information may lead to:

• Incorrect OSS filings
• Follow-up queries from tax authorities
• Additional VAT liabilities
• Interest or penalties under the applicable national rules

5. Notify Authorities of Changes

Under OSS rules, you must notify the Czech Financial Administration of relevant changes affecting your OSS registration.

These may include:

• Changes to business details, such as address, legal form or contact information
• Changes to relevant VAT identification details
• Cessation of activities covered by the OSS scheme
• Changes affecting eligibility for the scheme
• Changes to the Member State of Identification, where permitted
• Other changes affecting your OSS registration or reporting obligations

Important: Changes to dispatch countries, warehouse locations or stock storage arrangements may also affect your domestic VAT registration and reporting obligations.

These should be reviewed even where they do not automatically require a change to your OSS registration.

6. Do Not Double-Report VAT

If you use OSS:

• Transactions correctly declared through OSS should not also be declared as domestic VAT payable in the Member State of Consumption.
• Domestic transactions and other supplies outside the scope of OSS must continue to be reported through the appropriate VAT returns.
• OSS does not replace domestic VAT returns where a separate domestic filing obligation exists.

Double-reporting may create discrepancies, unnecessary payment liabilities or follow-up enquiries from tax authorities.

7. Cooperate With Tax Authorities

You must respond to relevant:

• Audit requests
• Information requests
• Record-checking requests
• Compliance reviews carried out by the Czech Financial Administration or other competent EU tax authorities

Failure to cooperate may result in additional compliance action.

Persistent failure to meet OSS obligations can also lead to exclusion from the scheme.

Summary of Your Legal OSS Responsibilities

Need Help Staying OSS-Compliant?

hellotax supports your OSS compliance by preparing and submitting returns based on the transaction information available through our services.

However, your data accuracy, complete transaction records and timely uploads are essential to maintaining compliance under EU law.

If you have questions about your Czech OSS obligations or need assistance with your reporting, contact hellotax.