Poland Czech Republic Tighten VAT Rules for EU Sellers

Published: 01/26/2026
Pan-European FBA VAT Compliance Cross-border E-commerce
This article delves into the necessity of VAT registration in Poland and the Czech Republic under the Pan-European FBA program. It clarifies the reasons for restricted sales permissions and identifies three scenarios requiring simultaneous VAT registration. Furthermore, it alerts sellers to the tax risks associated with prolonged zero VAT returns and emphasizes the importance of compliant operations. This provides practical guidance for cross-border e-commerce sellers navigating the complexities of Pan-European VAT compliance and ensuring sustainable business growth.
Poland Czech Republic Tighten VAT Rules for EU Sellers

Many sellers participating in Amazon's Pan-European program have faced unexpected VAT registration requirements, even when they haven't recorded actual sales in Poland or the Czech Republic. Recent cases show that some merchants had their selling privileges restricted due to failure to register and submit VAT information for these countries. This article examines the underlying causes and provides actionable compliance strategies.

Sales Restrictions: The VAT Compliance Challenge in Central Europe

The core issue stems from Amazon's Central Europe program. Under this system, Amazon consolidates sellers' inventory in German warehouses before redistributing products to fulfillment centers across Germany, Poland, and the Czech Republic based on demand. This automated distribution means merchants can trigger VAT registration obligations in Poland and the Czech Republic even without actively selling on those marketplaces. Sellers must therefore monitor inventory allocation closely and complete VAT registrations promptly to maintain uninterrupted selling privileges.

When Must Sellers Register for Polish and Czech VAT?

Three primary scenarios typically require simultaneous VAT registration:

  • Participation in the Pan-European program with Central Europe expansion: As mentioned above, inventory allocation serves as the primary trigger for VAT obligations in this case.
  • Use of local warehousing: Regardless of Pan-European program participation, any utilization of storage facilities in Poland or the Czech Republic mandates VAT registration.
  • Exceeding EU distance selling thresholds: When an EU-based company (not established in Czech Republic or Poland) sells to Czech customers and surpasses the €10,000 EU-wide distance selling threshold (without OSS registration), Czech VAT registration becomes necessary. Notably, this threshold applies to combined remote sales across all EU countries, not just Czech transactions.

The Risks of Zero-Reporting: A Long-Term Compliance Perspective

While sellers without Polish orders may technically file zero VAT returns, this approach carries potential risks. Polish tax authorities may subject accounts with prolonged zero-filing histories to audits, and could potentially cancel VAT numbers showing six consecutive months of zero activity. Sellers should carefully consider these implications and ensure all reporting aligns with local tax regulations.

Consequences of Non-Compliance: More Than Just Restricted Access

Ignoring Polish and Czech VAT requirements carries serious consequences. Beyond marketplace restrictions, sellers face potential penalties from tax authorities and reputational damage to their businesses. Once inventory enters local fulfillment centers, VAT registration and regular filing become non-negotiable obligations.

The complexities of cross-border ecommerce taxation demand proactive compliance measures. Sellers participating in Amazon's Pan-European program with Central European expansion must prioritize understanding and fulfilling their Polish and Czech VAT obligations. Regular monitoring of inventory movements and timely filings remain essential for sustainable operations in the European market.

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