If a customer pays by card or transfer before the goods are dispatched, the duty to account for VAT arises on the day the payment is received. With cash on delivery, where the money arrives only on collection, VAT arises on the day of supply. What matters is whether the payment came before the delivery or together with it. The principle is shared by Slovakia and Czechia, but the rates and statutory references differ.
When does the VAT liability arise on a sale of goods?
The basic rule is the same in both countries: for a supply of goods, VAT becomes chargeable on the day of supply, meaning the day the buyer acquires the right to dispose of the goods as owner. For an e-shop that ships via a carrier, this is generally the day the parcel is dispatched to the customer. In Slovakia this follows Section 19(1) of the VAT Act; in Czechia Section 21.
That day determines which tax period the VAT belongs to and the date on the invoice. Everything else in the return builds on it, so getting it right is essential.
How is VAT handled on advance payments?
If the customer pays before you deliver, a special rule applies: VAT becomes chargeable on the day the payment is received, from the amount received. In Slovakia this is Section 19(4); in Czechia Section 20a, which additionally requires that the supply is known with sufficient certainty (type of goods, rate and place of supply), a condition normally met by an ordinary e-shop order.
Example: a customer orders goods on 23 December and pays by card, but you dispatch on 3 January. The VAT belongs to December, because that is when you received the payment. If the payment is only partial, you account for VAT on that part and settle the rest on delivery. The standard VAT rate in 2026 is 23 % in Slovakia and 21 % in Czechia.
Why is cash on delivery different from paying by card upfront?
With cash on delivery the customer pays only on collection, so at the moment of ordering you receive no payment and the advance-payment rule does not apply. VAT arises in the standard way on the day of supply, not earlier. This holds in both Slovakia and Czechia.
The difference matters at a month-end. A card payment before dispatch pulls the VAT into an earlier period, whereas cash on delivery ties it to the day of delivery, not to the later day when the carrier forwards the collected money to your account.
How is VAT handled for subscriptions and recurring supplies?
For subscriptions and recurring supplies, both countries treat the supply as made no later than the last day of the period it covers, which simplifies record-keeping because you do not account for each individual instalment separately.
If, however, the customer pays the subscription upfront for the whole period, the advance-payment rule applies again and VAT is due on receipt of the payment. In practice the two rules combine, so for subscription models it is important to define in advance when payment is taken and which period it covers.
Which day counts for payment gateways?
For card payments through a gateway, the decisive day is the day the payment is credited in favour of the supplier or its payment provider, not the day the card is authorised. The gap between the customer paying and the money being credited can shift the tax period across a month-end.
This is where most confusion arises when reconciling gateway payments. We recommend relying on the date from the payment provider’s statement and using the same date when matching orders. Consistent dating prevents VAT from slipping into the wrong period.
What VAT mistakes do e-shops make most often?
The most common error is accounting for VAT only on dispatch, even though the customer paid by card earlier, which pushes the tax into the wrong, usually later period. The opposite mistake is charging VAT on a cash-on-delivery order already at the ordering stage, before any payment has arrived.
Cross-border sales add further complexity, because the rules on when VAT becomes chargeable combine with determining the place of supply and the possible One Stop Shop regime. A correctly identified day of chargeability is the foundation on which the whole return rests, in Slovakia and Czechia alike.
If you are unsure which period the VAT from your orders belongs to, we are happy to set up payment reconciliation and correct VAT timing for your e-shop.
FAQ
When do I account for VAT on an advance card payment?
For a card or transfer payment received before delivery, VAT becomes chargeable on the day of receipt, under Section 19(4) in Slovakia and Section 20a in Czechia. You account for VAT on the amount received in the period the money was credited, even if you dispatch later. The decisive date is when the payment is credited, not when the parcel ships.
How does VAT work with cash on delivery?
With cash on delivery the customer pays only on collection, so you receive no payment before delivery. VAT therefore arises on the day of supply, not at ordering and not on the later day the carrier forwards the collected money to you. It follows the day the parcel is delivered, in both Slovakia and Czechia.
Must I account for VAT on a subscription immediately?
It depends on when you receive payment. If the customer prepays the subscription, VAT is due on receipt. If the supply is recurring and paid over time, it is treated as made no later than the last day of the period the payment covers. That is why it helps to define the billing periods in advance.