Successful entry into the Czech market in 83 days
We helped a garden furniture manufacturer register a brand and adapt taxes for sales in the Czech Republic. Everything took place remotely.
The company Drew-Styl Sp. z o.o. planned to sell garden furniture in the Czech Republic but feared bureaucracy and double taxation. In 83 days, we went from document analysis to the first shipment of goods to a warehouse near Brno. Without fluff and unnecessary trips, we closed the entire procedure remotely.
The challenge
The manufacturer tried to register for the Czech VAT system on their own for 4 months, but their applications were rejected due to formal errors. The lack of a VAT-CZ number blocked the start of sales on large trading platforms, and the upcoming summer season meant a risk of losing contracts worth nearly 130,000 PLN. The company also had a problem with correctly setting tax rates for individual clients in Prague and Ostrava. Facts, not promises, mattered because time was running out and ready furniture occupied space in the Polish warehouse.
Our approach
We assigned 3 people from Profit Embassy to the project who know Czech tax law inside out. We started with an audit of internal invoicing procedures in Bydgoszcz. Money likes silence, so without unnecessary publicity, we prepared full documentation for the Czech tax office. We focused on the VAT OSS system so that the client could settle everything from one place. We consulted every step directly with the Drew-Styl logistics department to avoid mistakes with waybills.
The solution
We registered the company as a VAT taxpayer in the Czech Republic and implemented the OSS procedure. We prepared commercial contract templates in Czech and Polish that protect the manufacturer's interests in the event of returns. Additionally, we secured the client's brand in the local patent office, which blocked unfair competition from copying garden chair designs. We set up accounting processes so that currency conversion from CZK to PLN took place at an exchange rate favorable to the company's budget. We operate within the law, so the client gained full security against Polish and Czech tax audits.
Results
Drew-Styl Sp. z o.o. started regular deliveries to the Czech Republic before the end of the season, bypassing intermediaries and keeping a higher margin for themselves.
Timeline
-
June 2024Submission of a set of applications for VAT-CZ and registration in the OSS system.
-
July 2024Trademark registration and sales department training on issuing invoices.
-
August 2024Finalization of formalities and shipment of the first 14 sets of furniture to the Czech Republic.
"Initially I was afraid that the paperwork in the Czech Republic would block us and we would lose another year. Profit Embassy showed us concrete steps without fluff. Everything started according to plan, and we are making money."