Czech Republic Submits First-Stage Bill to Transpose the EU’s VAT in the Digital Age Package

On 2 June 2026, the Czech Ministry of Finance submitted a draft law (Bill No. 318/26) to the Chamber of Deputies transposing the first stage of the European Union’s VAT in the Digital Age (ViDA) reform into Czech law.

The bill implements changes required by Council Directive (EU) 2025/516 and is scheduled to take general effect on 1 January 2027, with certain provisions phased in later. This is the first Czech transposition bill implementing part of ViDA, specifically the 2027 measures, rather than the first stage defined by the Directive itself.

Background

ViDA is the European Commission’s package of VAT reforms designed to modernize the EU VAT system for the digital economy.

Adopted by the Council as Directive (EU) 2025/516 on 11 March 2025, it amends the EU VAT Directive (2006/112/EC) across three broad areas: digital reporting requirements and mandatory e-invoicing for intra-EU B2B transactions (from 2030), an expanded deemed-supplier regime for the platform economy, and a Single VAT Registration (SVR) framework that widens the One-Stop Shop (OSS) and reverse-charge mechanisms.

Member States are required to transpose the different pillars of the directive on a staggered timetable running through 2027, 2028 and 2030. The Czech Republic’s Bill No. 318/26 represents the country’s first legislative step in that transposition process, focusing on the platform economy and Single VAT Registration elements that must be in force from 1 January 2027.

The Legislative Change

Bill No. 318/26 amends the Czech VAT Act to give effect to the ViDA measures that apply from 1 January 2027. The principal changes are:

• An expansion of the deemed-supplier regime, under which operators of electronic interfaces (marketplaces and platforms) become liable for VAT on certain supplies made by underlying foreign sellers to non-taxable persons.
• Clarification of place-of-supply and reporting rules for the One-Stop Shop (OSS), including harmonization of the date on which the taxable event and chargeability of VAT arise for OSS transactions.
• Minor extensions to the scope of the Union and non-Union OSS schemes.
• Repeal of the call-off stock simplification with effect from 1 July 2028 (with transitional use permitted until 30 June 2029), to be replaced by a new regime governing cross-border movements of a business’s own goods.

Scope

The bill affects businesses that operate or sell through electronic interfaces facilitating supplies by non-EU sellers, businesses using the Union or non-Union OSS schemes for cross-border B2C supplies, and any business currently relying on the call-off stock simplification for goods held in the Czech Republic pending future transposition of the successor regime.

Timeline

2 June 2026: Bill No. 318/26 submitted to the Chamber of Deputies (Poslanecká sněmovna). Second half of 2026: expected readings in the Chamber of Deputies and the Senate. 1 January 2027: general effective date for the OSS and deemed-supplier provisions. 1 July 2028: repeal of the call-off stock simplification, with transitional use of existing arrangements permitted until 30 June 2029.

Businesses Affected

Online marketplaces and electronic interface operators facilitating third-country sales to Czech consumers, EU and non-EU businesses using the OSS schemes for Czech-related supplies, and manufacturers, distributors, or retailers that hold call-off stock inventory in the Czech Republic will all need to review their current VAT positions against the new rules.

Required Actions

Businesses in scope should:

• Track the bill through the Chamber of Deputies and Senate and monitor for amendments before final adoption.
• Assess whether platform or marketplace activities will newly fall within the deemed-supplier regime and, if so, quantify the resulting VAT collection and remittance obligations.
• Review OSS reporting logic in ERP and tax engines to reflect the harmonized date-of-supply rules.
• Begin planning the transition away from call-off stock arrangements well ahead of the 1 July 2028 repeal, noting the transitional window closes on 30 June 2029.

Practical Implications

For platform operators, the expanded deemed-supplier rule shifts VAT collection responsibility onto the interface itself, requiring system changes to identify in-scope transactions, calculate VAT at the point of sale, and remit it through the appropriate scheme.

For OSS users, the harmonized date-of-supply rule reduces ambiguity in periodic OSS returns but may require adjustments to reporting cut-off logic. Businesses using call-off stock have a multi-year runway, but the eventual move to a new own-goods movement regime will require a distinct VAT treatment and system configuration, so early planning is advisable rather than waiting for the 2028 deadline.

Expected Next Steps

The bill will proceed through the standard Czech legislative process, including committee review, plenary readings in the Chamber of Deputies, Senate review, and presidential signature, with possible amendments along the way.

In parallel, the Czech Republic and other Member States are expected to bring forward further ViDA-related legislation covering the mandatory digital reporting and e-invoicing requirements for intra-EU B2B transactions that apply from 1 July 2030, so this bill should be seen as the first of several transposition steps rather than the final one.

How Can KGT Support You?

KGT builds SAP-integrated e-invoicing add-ons and supports SAP Document and Reporting Compliance (SAP DRC) implementations for continuous transaction control and digital reporting regimes worldwide. Where SAP DRC does not yet offer native local coverage, KGT develops certified add-ons—including data extraction, validation, and a reporting cockpit—to bridge the gap and keep clients compliant on schedule.

As an SAP partner for e-invoicing and tax technology services and an SAP Build partner, KGT supports clients through installation, configuration, customization, testing, and training, helping them plan ahead of legislative deadlines rather than react to them. If you would like to discuss the impact of this development on your SAP landscape, we are happy to arrange a call.