Poland vs Czech Republic: Which VAT jurisdiction is best for Amazon sellers?

Two of the most popular entry points into Amazon’s Central European Fulfilment Network are Poland and the Czech Republic. Both countries host Amazon warehouses and offer strategic logistics advantages, but they differ in important aspects of their VAT systems. Choosing between them means weighing factors such as VAT registration thresholds, standard and reduced VAT rates, compliance requirements, and the availability of local tax support services.

In this post, we’ll take a detailed look at how Poland and the Czech Republic compare as VAT jurisdictions for Amazon sellers. Whether you’re just starting out or looking to optimize your tax setup, understanding these differences can help you make an informed, strategic choice.

VAT registration thresholds

Before selling on Amazon in the EU, it’s essential to understand when and where you need to register for VAT. The rules differ depending on whether you’re storing products in a specific country or simply shipping across borders. Your registration obligations can have a real impact on your costs, paperwork, and long-term strategy.

Poland and Czech Republic: different local thresholds

If you’re selling from outside a country and not using Amazon warehouses there, you can often delay VAT registration until your local sales exceed a certain amount.

➜ In Poland, this threshold is PLN 200,000 per year, which is roughly €43,000.

➜ In the Czech Republic, the threshold is much higher—around €84,000.

This difference matters. A higher threshold gives smaller or newer sellers more room to grow before they need to register, collect VAT, and file local returns. That’s one reason the Czech Republic is often seen as a more flexible starting point for low- to mid-volume Amazon businesses.

Storing goods? you must register anyway

Thresholds no longer apply once you store goods in a country—for example, by using Amazon’s FBA warehouses in Poland or the Czech Republic. As soon as your inventory is located there, you’re required to register for VAT locally, regardless of your turnover. This is a key rule that catches many sellers off guard.

So, if you’re planning to take advantage of Amazon’s Central European Fulfilment Network (CEFN), VAT registration in those countries will likely be part of your setup from day one.

OSS: One Stop Shop for cross-border sales

If you’re shipping products from one EU country to customers in other EU countries—without using warehouses outside your home country—you may benefit from the One Stop Shop (OSS) scheme.

OSS allows you to:

✔ Avoid multiple VAT registrations across EU countries.

✔ Declare and pay VAT for all EU B2C sales in one country (usually your country of establishment).

✔ Simplify paperwork by submitting one quarterly VAT return under the OSS system.

This scheme applies if your cross-border B2C sales within the EU exceed €10,000 per year. Below that threshold, you may still apply your home country’s VAT.

💡 Keep in mind: OSS is not a replacement for VAT registration if you’re storing goods in other countries—in such cases, you still need to register locally.

VAT rates

VAT rates vary across EU member states and can have a direct impact on pricing, profit margins, and overall tax liability. For Amazon sellers, understanding the applicable VAT rates in Poland and the Czech Republic is essential when evaluating which jurisdiction offers better long-term cost efficiency.

Poland: higher standard rate, sector-specific reductions

Poland applies a standard VAT rate of 23%, which ranks among the higher rates in the European Union. In addition to the standard rate, there are two reduced rates:

➜ 8%, typically applicable to certain medical products, passenger transport, and selected food items,

➜ 5%, which generally covers books, specialist foods, and some press publications.

For most Amazon sellers, particularly those dealing in consumer goods, the 23% rate will apply. While reduced rates may offer advantages for niche sellers, the standard rate remains the baseline for the majority of transactions—making Poland a relatively high-VAT environment.

Czech Republic: more competitive standard rate

In the Czech Republic, the standard VAT rate is 21%, offering a modest but potentially meaningful advantage over Poland. The reduced VAT rates are set at:

➜ 15%, applicable to a range of food products and selected services,

➜ 10%, covering books, pharmaceuticals, baby food, and cultural services.

Although the difference between 21% and 23% may appear marginal, it can have a measurable impact on pricing strategy, customer competitiveness, and net revenue, particularly when selling high-volume or low-margin products.

Implications for pricing and margins

Even a small variance in VAT rates can significantly affect overall profitability—especially when VAT is factored into retail pricing. A lower VAT rate allows more flexibility in setting competitive prices or preserving margin, without requiring price increases that might deter EU consumers.

For businesses operating in categories eligible for reduced rates, it is worth assessing whether your product classification aligns more favorably in one jurisdiction than the other. However, for the majority of Amazon sellers operating under the standard rate, the Czech Republic’s lower VAT rate may offer a slight but consistent financial advantage over time.

VAT compliance and administrative burden

VAT registration is just the beginning. Once you’re registered, you’ll need to keep up with ongoing compliance: filing VAT returns on time, issuing proper invoices, keeping records, and possibly responding to local tax authorities. For Amazon sellers expanding into new markets, how easy—or difficult—this process is can have a big impact on your time and resources.

When is VAT registration required?

Even if you’re using the OSS scheme for cross-border sales, there are cases where local VAT registration is mandatory. The most common one? Storing goods in a country.

If you use Amazon FBA and store inventory in Poland or the Czech Republic, you are automatically required to register for VAT in that country, regardless of your sales volume or where your customers are located. OSS does not cover storage-based obligations. In such cases, full local compliance—including filings and correspondence with the tax office—is required from day one.

Poland: strong support for foreign sellers

Poland offers a well-established ecosystem of VAT compliance services tailored to international e-commerce sellers. Many providers specialize in working with Amazon businesses and offer services in English and German, which makes communication smoother and the process less intimidating.

From registration to filing monthly or quarterly returns, these firms typically handle all aspects of compliance, often under a fixed-fee model. This can be especially helpful for sellers who want to stay focused on sales and logistics rather than getting caught up in tax paperwork.

Czech Republic: fewer services, more self-management

The Czech Republic also requires VAT registration when inventory is stored locally, but compared to Poland, there are fewer well-documented service providers catering specifically to Amazon sellers.

While some accounting firms and VAT agents operate in this space, they are less visible in the international market and may not offer the same level of multilingual support. This could mean more hands-on involvement from the seller, particularly when it comes to communicating with tax offices or understanding local procedures.

Dealing with tax authorities: what to expect

Navigating local tax systems is a key part of staying compliant—and the experience can vary depending on the country.

In Poland, sellers generally find the tax administration to be structured and accessible, particularly when supported by a local tax representative. Procedures are clearly outlined, and in many cases, documentation is available in English. With professional assistance, the compliance process tends to be straightforward and predictable.

In contrast, the Czech Republic may present a few more challenges, especially for sellers managing VAT obligations independently. Language can be a barrier, and practices may differ slightly between regional tax offices. While the system is not inherently more complex, it often requires a bit more hands-on involvement and familiarity with local expectations to navigate smoothly.

Practical considerations for Amazon sellers

Beyond registration thresholds and tax rates, Amazon sellers must also take into account practical factors such as fulfillment strategy, inventory storage, and the types of sales made. These aspects significantly affect VAT obligations and determine how complex your compliance setup will be.

Warehouse storage and VAT obligations

One of the key factors impacting VAT compliance is the location of your goods. If you use Fulfilment by Amazon (FBA) and store inventory in countries like Poland or the Czech Republic, you are required to register for VAT locally in those countries — regardless of your sales volume or whether you’re using the OSS scheme.

This rule applies throughout the EU: storing goods in a country creates a local VAT obligation, often equivalent to having a “fixed establishment” for VAT purposes. It triggers the need to:

• register for VAT in that country,
• charge the local VAT rate,
• submit local VAT returns regularly.

For sellers using Amazon’s Central European Fulfilment Network (CEFN) — including warehouses in Poland, the Czech Republic, and Germany — this means multiple VAT registrations are usually unavoidable if you want faster delivery and broader customer reach.

VAT treatment of cross-border sales

Understanding how VAT applies to different cross-border transactions is essential:

B2C sales (Business-to-Consumer)

For sales to private individuals in other EU countries:

• You must apply the VAT rate of the customer’s country.
• If you use the One Stop Shop (OSS) scheme, all such sales can be reported in one quarterly VAT return via your home country, greatly simplifying compliance.
• Without OSS, you must register for VAT in each EU country where your total B2C cross-border sales exceed €10,000 per calendar year.

B2B sales (Business-to-Business)

Most intra-EU B2B sales are zero-rated for VAT, provided:

• the buyer has a valid VAT number in another EU country,
• the goods are physically shipped from one EU country to another.

Proper documentation is essential, including transport evidence and buyer VAT validation.

Exports outside the EU

Sales to non-EU customers are zero-rated, assuming the goods are:

• physically exported outside the EU, and
• supported by appropriate customs documentation (e.g. EX-A, shipping invoices).

This can be a VAT-efficient sales channel but involves customs declarations and additional compliance steps.

Logistics and fulfillment strategy

Where and how you fulfill orders directly affects your VAT exposure:

• Sellers who store all inventory in a single EU country and ship to other EU countries from there may rely on OSS for cross-border B2C sales, minimizing the need for local registrations.
• This setup is often ideal for new or lower-volume sellers entering the EU market.

However, many Amazon sellers use the CEFN to:

• offer faster delivery,
• benefit from local Prime eligibility,
• improve customer experience.

While this enhances logistics, it also increases VAT complexity, requiring local VAT registration in every country where goods are stored.

OSS vs local VAT registration

When selling across the EU, one of the most important decisions Amazon sellers face is whether to rely on the One Stop Shop (OSS) scheme or register for VAT in multiple countries. Understanding when each option applies—and how they can work together—is essential for staying compliant while keeping your operations as streamlined as possible.

When OSS is the right solution

The OSS scheme was introduced to simplify VAT reporting for cross-border B2C sales within the EU. Instead of registering for VAT in every EU country where you have customers, you can file a single quarterly VAT return through the OSS portal in your country of establishment. OSS covers all distance sales of goods to consumers in other member states, making it especially useful for sellers who:

• Sell exclusively to private individuals (B2C) within the EU,
• Do not store goods in other EU countries.

For businesses that ship orders from a single location—whether inside the EU or from abroad—OSS can significantly reduce administrative complexity.

When local VAT registration is still required

However, OSS does not replace local VAT registration in all cases. There are several scenarios where registering locally is still mandatory:

• Storing inventory in another EU country (e.g., in Amazon FBA warehouses in Poland or the Czech Republic):
  Holding stock in a country creates a fixed establishment for VAT purposes. This triggers an obligation to register for VAT locally, charge the local VAT rate on relevant transactions, and submit local VAT returns—regardless of whether you’re using OSS.
• Selling to business customers (B2B):
  OSS is designed only for B2C sales. If you sell to VAT-registered businesses within the EU, these transactions must be handled through your domestic VAT return (not OSS), and may require local registration depending on where the goods are stored or dispatched from.

OSS and local VAT registration can coexist

It’s important to note that OSS and local VAT registration are not mutually exclusive. Many Amazon sellers use both:

➜ OSS to manage B2C sales across the EU from a single return,

➜ Local VAT registrations in countries where they store goods or engage in B2B transactions.

Recommendations based on business profile

When deciding between Poland and the Czech Republic as your VAT jurisdiction, there’s no universally “best” option. The right choice depends on your business model, sales volume, fulfilment strategy, and long-term growth plans. Below are practical recommendations tailored to common seller profiles.

Smaller or early-stage sellers (annual turnover below €84,000)

For sellers in the early stages of expansion or operating at lower volumes, the Czech Republic may offer greater flexibility. Its higher VAT registration threshold—approximately €84,000—means you can sell significantly more before being required to register for VAT locally, provided you’re not storing inventory in the country.

This can reduce administrative overhead in the initial phases of market entry. Combined with the OSS scheme, which allows you to report cross-border B2C sales from a single VAT return, this setup can keep your compliance obligations light while still enabling EU-wide reach.

FBA users and high-turnover businesses

If you use Amazon FBA warehouses in Poland or the Czech Republic—or if you anticipate higher sales volumes—local VAT registration becomes mandatory, regardless of thresholds. In this case, Poland may offer a more practical solution, particularly from a compliance management perspective.

While Poland applies a higher standard VAT rate (23%), it benefits from a well-developed network of VAT service providers with experience in supporting international Amazon sellers. These firms often offer English- or German-language support and streamlined processes, which can make a significant difference in day-to-day operations.

For sellers with larger inventories, multi-country fulfilment, or more complex logistics, Poland’s established compliance infrastructure can help reduce friction and ensure you remain fully compliant as your business scales.

Non-FBA sellers using OSS for cross-border B2C sales

If your business model doesn’t involve storing goods in other EU countries and your focus is on cross-border B2C sales, the OSS scheme provides a simplified and highly efficient compliance route—regardless of whether your base is in Poland or the Czech Republic.

In this scenario:

• Your inventory remains in one country,
• You use OSS to report VAT for all sales to consumers in other EU member states,
• You avoid the need for multiple VAT registrations unless your fulfilment model changes.

This setup is particularly well-suited to digitally native, streamlined operations and sellers looking to expand into new markets with minimal administrative overhead.

Final verdict: which VAT jurisdiction is best?

So, which is better—Poland or the Czech Republic? The honest answer is: it depends. There’s no universal solution that fits every Amazon business. The best VAT jurisdiction for you will depend on several key factors, including your fulfilment strategy, turnover, market reach, and how much external support you want or need.

Here’s how to think about it:

• Do you use FBA or store goods locally?
  If you hold inventory in Poland or the Czech Republic, local VAT registration is mandatory—regardless of where your business is based or whether you use the OSS scheme. In this case, choosing the country with better compliance infrastructure (often Poland) may offer practical advantages.
• What’s your annual turnover?
  If your sales are below €84,000, the Czech Republic’s higher VAT registration threshold could allow you to operate longer without triggering local VAT obligations—particularly useful for smaller or early-stage sellers.
• Which countries do you sell to?
  If your customer base spans the EU and you don’t store goods locally, the OSS scheme allows you to handle VAT compliance through a single registration. In this case, either Poland or the Czech Republic can serve as a suitable base, provided the rest of your setup is efficient.
• Do you need support managing compliance?
  If you value hands-on assistance, Poland offers a stronger ecosystem of VAT service providers, many of whom have experience working with international Amazon sellers. This can reduce friction and help you stay compliant with less day-to-day effort.

💡 Pro tip: Trying to manage VAT in multiple countries without local support can lead to costly errors. Working with a VAT partner helps you stay compliant — and saves valuable time.

Our recommendation

Before making a final decision, it’s highly advisable to consult with a VAT advisor who specializes in EU e-commerce and Amazon operations. Every business is unique, and a professional can help you assess your fulfilment model, sales channels, and growth plans to determine the most efficient and compliant VAT setup.

Choosing the right jurisdiction isn’t just about saving money—it’s about building a VAT strategy that supports your business as it scales across Europe.