Collaboration opportunity
Collaboration
"Dear Visitors!
We hereby offer cooperation in the field of organization and/or development of business in the Czech Republic (CR).
The core of the proposal revolves around streamlining business processes in the Czech Republic on behalf of your company or in collaboration with an established Czech entity (with 12 years of market presence). Cooperation options include joint ventures or consulting services.
Based on the chosen collaboration model, services can be rendered either through a Czech company or by individual specialists. The composition of the specialist team will expand accordingly based on the scope of services required.
The current most popular projects include
1. Establishment of a warehouse within the Czech Republic to facilitate the distribution of goods to European and/or third-country consumers.
The Czech Republic stands out in Central and Eastern Europe as the only country where input VAT is not levied on goods imported from third countries. Consequently, the warehouse in the Czech Republic operates under the "customs licensed warehouse" mode for VAT purposes. Dispatching goods from a Czech warehouse enables swift assembly and delivery, ensuring expedited trade under the intra-European trading regime (intrakomunitární dodání zboží) with a zero VAT rate for VAT-registered buyers. Moreover, delivery from a Czech warehouse extends the reach to European clients who do not engage in foreign trade activities (lacking an EORI - foreign trade activity code), thereby expanding the customer base. Additionally, the goods and their transportation are safeguarded by prominent European insurance providers such as Kooperativa, EULER HERMES, KUPEG, etc.
2. Structuring financing for your company's trade flow through European banks.
Typically, European clients often demand substantial deferred payment terms from their suppliers, which might not always be feasible. However, conducting goods delivery under the auspices of a Czech company enables the arrangement of financing for the flow of goods through European banks. Furthermore, the receivables of your clients can be safeguarded by European insurance companies, mitigating the risk of non-payment. Collateral for lending can encompass both accounts receivable and inventory in the warehouse (if establishing one in the Czech Republic), and potentially future account turnovers.
3. Implementation of business process and asset management for an enterprise and/or group of enterprises, following agreed-upon business algorithms and approved regulations outlined in a prepared (written) management program.
Employees. Partners
The team will be formed from experienced professionals with experience in their respective fields. A serious advantage of this team is joint participation in a commercial project, the consolidated annual turnover of which exceeded 500 million USD.
Specialized services such as audit, accounting, IT services, legal assistance, etc., will be furnished through service agreements (outsourcing) with companies boasting extensive experience and a successful track record in the Czech services market. These contracts can be directly secured with clients, while we will handle communication aspects with specialized companies, including participating in negotiations on behalf of our partner/client, gathering and processing information, offering comprehensive contract support, facilitating feedback, and more.
Tax advantages in the Czech business environment include
From a tax perspective, the Czech Republic presents an exceptionally enticing environment for arranging the movement and transshipment of goods.
The VAT Law permits the offsetting of input VAT obligations on imported goods against the entitlement to a VAT refund from the state budget within the same tax period. For importers, this translates to non-payment of VAT on imports. Consequently, goods are considered to be in free circulation, with VAT obligations only arising upon their sale. As a result, the warehouse operates under the "customs licensed warehouse" mode. When goods are sold outside the Czech Republic to a VAT-registered entity or outside the EU with a customs declaration, the sale is executed with a 0% VAT rate.
We possess expertise in delivering goods from Dubai and Hong Kong, with transshipment in Prague and subsequent delivery to the Baltic states. The purpose of transshipment in Prague is to circumvent VAT payment on imports and the subsequent refund demands from the budget. Consequently, VAT is not paid upon importation into the Czech Republic, and the goods are subsequently dispatched to another EU country to the VAT payer with a 0% VAT rate.
If required, we can facilitate VAT registration and administration in other EU countries, enabling us to supply goods to prospective buyers in compliance with the internal VAT administration regulations of the respective country. For instance, if potential buyers are situated in Germany, our company will import goods into the Czech Republic and store them in a warehouse. At the client's instruction, we will then transfer the goods to the jurisdiction of a German financial authority and sell them to a German buyer on behalf of a German VAT payer. This option frequently proves pivotal for clients when determining their purchase decisions.
For the supply of certain goods within the Czech Republic, the rule of transferring the obligation to pay VAT from the seller to the buyer (režim přenesení daňové povinností) is applicable. This enables residents of the Czech Republic who are VAT payers, both buyers and sellers, to market goods within the Czech Republic with a 0% VAT rate.
Deliveries of goods throughout Europe within a distance of 600 – 800 km are typically conducted by road transport, owing to its speed and convenience. Within this radius with Prague as the central point, major cities such as Berlin, Vienna, Budapest, Dresden, Munich, Nuremberg, etc., are easily accessible.
If you have any questions or require further clarification on any topic, please don't hesitate to ask. Additionally, if you have any specific suggestions or preferences regarding our collaboration, feel free to share them. We are committed to ensuring a successful partnership and meeting your needs effectively.
Sincerely,
Štirba Igor