Receiving packages from outside the European Union will become a little easier for customers and retailers in the Czech Republic.
Czech Post (Česká pošta) has announced that it will cooperate with online marketplace Wish.
The cooperation with Wish is an expansion of Czech Post’s effort to streamline the processing of shipments from China. Wish is a US-based online marketplace that brings together sellers and buyers.
Sellers who list their products on Wish send the items directly to consumers, the platform does not stock the products or manage returns. Most products available through the app come from China and other overseas contributors.
“After concluding an agreement with AliExpress in 2020, another business portal with which Czech Post will cooperate is the Wish platform”, said Czech Post in a press release. The cooperation is an effort to reduce some of the red tape associated with taxes and custom duties.
New VAT rules
The Czech Post cooperation with Wish is established after the VAT rules changed within the European Union. AliExpress recently began collecting VAT on its own and pays the tax to the European Union through the new Impost One-Stop Shop which the EU launched on the first of July this year. As of that date, shipments below 22 euros are also subject to tax.
Wish will handle taxes
With the new cooperation, customers will not have to pay additional VAT or custom duties when their package is delivered via Czech Post. The shipments will be released for free circulation within the EU in advance, because Wish will handle the tax and relevant administration.
Nothing changes for customers when shopping, the procedure for placing orders through the Wish portal remains the same. Because of this cooperation, it is to be expected that Czech consumers will be encouraged to place orders on Wish.