Contractual relationships and the relevant reporting of sales with external carriers, messengers, or post-service providers for the dispatch of goods and collection of payments must comply with certain measures under the law on the electronic reporting of sales and the General Financial Directorate’s (GFD) interpretations.
Most important and decisive is the title under which the carrier receives payments from customers. In practice, there are generally three contractual scenarios:
The GFD guidance emphasizes that the contractual relationship’s content—and not just its formal designation—is crucial in this respect.
When carriers collect sales based on contracts for direct representation (e.g., contracts of mandate), they act on behalf and on the account of the appropriate taxpayer/seller. Such payments must be reported no later than at the moment the carrier accepts the payment from the end-customer. Taxpayers/sellers are responsible for the reporting of sales or they may place their certificates into the custody of the carriers. Another option is to authorize the carrier to report these sales. The receipt’s essential elements will depend on the selected reporting method, as these elements may differ each time.
When carriers act based on contracts for indirect representation (e.g., consignment contracts or when they act in their own name but on the taxpayer’s account), the received payment must also be reported no later than at the moment the carrier accepts the payment. Unlike for direct representation, the payment is reported by the carrier using their own certificate. Here, the receipt’s essential elements vary from the essential elements pertaining to the previous scenario.
Transactions during which carriers act as mediators, in particular post-service operators included in a listing published by the Czech Telecommunication Office, these form a separate category. The methodological guidance on the electronic reporting of sales explain the sales must be reported the moment the carrier hands over/transfers the payment to the taxpayer. When payments using credit cards are concerned, the GFD’s already published opinion on payments made via payment terminals must be taken into account.
Read a March 2017 report prepared by the KPMG member firm in the Czech Republic
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