VAT Act Amendment 2027: Implementation of the ViDA package in a (for now) limited scope

The current changes transpose only the part of the EU Directive that primarily focuses on clarifying the existing rules and addressing specific situations in cross-border trade.

Key Changes Introduced by the Amendment:

Expansion and Clarification of the OSS (One Stop Shop) Scheme: For taxable persons registered under the EU OSS scheme, a legal fiction will be introduced whereby the place of supply will always be deemed to be located in the Member State of consumption (i.e. where the customer is established), even where the EUR 10,000 threshold is not exceeded. This aims to eliminate uncertainties in determining the place of taxation for distance sales of goods and selected services.

Uniform Time of Supply: For services reported under the OSS scheme, the chargeable event and the time when VAT becomes chargeable will be standardised as the date on which the service is supplied. The current possibility of treating the invoice issuance date as the taxable date will be abolished in order to ensure harmonisation across all EU Member States.

Platforms as “Deemed Suppliers”: The role of digital platforms (operators of electronic interfaces) will be expanded. Under the new rules, platforms will become liable for accounting for VAT not only on supplies to final consumers, but also on supplies to persons for whom the intra-Community acquisition of goods is not subject to VAT (e.g. non-taxable persons or small enterprises without a valid VAT identification number).

Simplification for the Energy Sector and Electromobility: Cross-border supplies of electricity, gas, heating and cooling to final consumers (e.g. charging electric vehicles abroad) will newly qualify as distance sales of goods. This will allow suppliers to declare and pay VAT through the OSS scheme and avoid VAT registrations in multiple Member States.

Gradual Abolition of the Call-off Stock Regime: The current call-off stock regime (Section 18 of the Czech VAT Act) will be abolished as of 1 July 2028. Until then, it will be replaced by a new and more efficient system for transfers of own goods within the OSS framework.

Support for the Defence Industry (SAFE): In connection with strengthening European defence capabilities, the Ministry of Defence will issue certificates for VAT exemption applicable to imports and supplies of defence products under the EU SAFE instrument.

Exceptional VAT Refunds for EU Bodies: The amendment will enable retroactive VAT refunds to the European Commission and EU agencies for purchases of goods and services related to the COVID-19 pandemic where VAT exemptions had not previously been applied.

Most of the above-mentioned changes will take effect on 1 January 2027.

Conclusion

The main objective is to modernise the VAT system, reduce the administrative burden for businesses engaged in cross-border trade, and improve tax collection efficiency within the digital economy.

Overall, the amendment is expected to have a positive impact on the business environment by simplifying the rules for cross-border transactions.

However, further developments in the legislative process and the final wording of the adopted rules should be monitored.

Unsure how the upcoming VAT changes may affect your business? Contact us – we will be happy to help you assess the practical implications of the amendment and determine the appropriate next steps.