Czech Post announces cooperation with U.S.-based e-commerce platform Wish

VAT, customs fees, and administrative paperwork can be handled in advance when ordering from the popular internet e-commerce platform.

Raymond Johnston

Written by Raymond Johnston
Published on 26.08.2021 11:29 (updated on 26.08.2021)

Getting mail-order packages from outside the European Union can prove complicated for customers in the Czech Republic. Czech Post (Česká pošta) has now announced that it will cooperate with another popular e-commerce platform in an effort to reduce some of the red tape associated with taxes and customs.

“After concluding an agreement with Aliexpress in 2020, another business portal with which Czech Post will cooperate is the Wish platform,” Czech Post said in a press release. "The biggest advantage for clients is that they will not have to pay tax on their orders because Wish will handle it for them, including the relevant administration."

On deliveries made via the Czech Post, customers will not have to pay additional value-added tax (VAT) or customs duties because the consignments will be released for free circulation within the EU in advance.

“Nothing changes for customers when shopping; the procedure for placing orders through the Wish portal remains the same,” Czech Post said.

“On the good-news List, after Aliexpress we can add another e-shop that has matured. That is why we have signed a contract with [Wish] and only customers in the Czech Republic will benefit from it,” Czech Post added.

Wish is a U.S.-based e-commerce platform founded in 2010 that brings together sellers and buyers. The platform works with payment service providers to handle payments but does not stock the products themselves or manage returns. Sellers who list their products on Wish sent the items directly to consumers. The majority of merchandise available through the app comes from China and other overseas distributors. More than 1 million sellers use the Wish platform.

Aliexpress signed an agreement with Czech Post in the fall of 2020 regarding the delivery of its shipments from China. “In the future, this cooperation will significantly help streamline the processing and delivery of shipments from China,” Czech Post said at the time.

News server Euro.cz has pointed out that many shipments from China still faced significant delivery delays of weeks or even months after they were taken over by Czech Post.

AliExpress recently began collecting VAT on its own and pays the tax to the European Union through the new Import One-Stop Shop (IOSS) system, which the EU launched July 1, 2021. Rules concerning VAT on shipments below EUR 22 in value changed on that date, making those packages also subject to tax.

“The IOSS facilitates the collection, declaration and payment of VAT for sellers that are making distance sales of imported goods to buyers in the EU. The IOSS also makes the process easier for the buyer, who is only charged at the time of purchase, and therefore does not face any surprise fees when the goods are delivered,” a European Commission statement reads.

The issue of customs fees for Aliexpress orders, though, is still unclear, news server Seznamzpravy.cz pointed out. As a way of avoiding these extra fees, some Chinese retailers are sending more goods from warehouses in the European Union. This also improves delivery time, Seznamzpravy.cz added.

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