Running an e-shop is a business like any other, so it is no surprise that there are numerous laws that apply to online stores. Take a look at our overview of everything you should not forget from a legal perspective when operating an e-shop — from setting it up to making sales.
Setting up an e-shop
Your first encounter with legislation comes when you start setting up your e-shop.
Legal form of the e-shop
First of all, you need to decide whether you will operate your e-shop as a sole trader (self-employed individual) or establish a company. In both cases, you will need to register with the relevant authorities, such as:
- Trade Licensing Office (sole trader) / Commercial Register (company)
- Tax Office
- Health insurance company
- Czech Social Security Administration
This area is governed by:
- Act No. 455/1991 Coll., on Trade Licensing (Trade Licensing Act)
- Act No. 90/2012 Coll., on Business Corporations
VAT payer or non-VAT payer?
At the beginning of your e-shop journey, it is also worth considering whether you will register as a VAT payer. VAT registration brings increased administrative burden, but especially if you trade with other businesses, VAT deduction can be beneficial.
You automatically become a VAT payer upon exceeding the turnover threshold (in 2025, this is CZK 2,000,000 per calendar year or CZK 2,536,500 for the last 12 months). If you trade cross-border and are not a VAT payer, you must become a so-called identified person.
If you become a VAT payer and sell abroad, you should be interested in the One Stop Shop (OSS) system and the reverse charge mechanism. This area is regulated by Act No. 235/2004 Coll., on Value Added Tax.
Thanks to the One Stop Shop scheme, you do not need to register for VAT in your customers’ countries, but instead pay VAT in the country where you are registered. Learn more in our guide: How to set up OSS in WooCommerce? >>
Reverse charge means that for selected goods, the customer declares the VAT instead of the supplier. Learn more in our guide on how to set up reverse charge in WooCommerce >>
Will you issue invoices?
Invoicing for an e-shop is not always mandatory. You do not have to issue invoices to private individuals unless they explicitly request one. However, you must always invoice business entities (sole traders, companies). This is governed by Act No. 563/1991 Coll., on Accounting.
Technically, however, it is much easier to automatically issue invoices to all customers, and most e-shops follow this practice. For regular customers, the invoice then serves as proof of purchase.
In WooCommerce, you can easily automate invoicing, saving time and preventing errors. Check out our guide on how to automate invoice issuance >>
Flat-rate expenses, tax records, accounting, inventory records
Other legal requirements when operating an e-shop relate to tax records, accounting, or applying flat-rate expenses. These are regulated by:
- Act No. 563/1991 Coll., on Accounting
- Act No. 586/1992 Coll., on Income Taxes
See what options are available:
| Business category | Flat-rate expenses | Accounting | Tax records |
|---|---|---|---|
| Legal entities (Ltd., Plc.) | – | Must keep accounting | – |
| Individuals (self-employed) – VAT payers | – | Must keep accounting | Only in certain cases |
| Individuals (self-employed) – non-VAT payers – turnover < CZK 2 million | May apply | May voluntarily keep accounting | May keep tax records |
| Individuals (self-employed) – turnover > CZK 2 million | – | May voluntarily keep accounting | Usually keep tax records |
| Individuals (self-employed) – turnover > CZK 25 million | – | Must keep accounting | – |
As an e-shop, you are also required to maintain inventory records, as required by the above laws. The scope depends on whether you keep accounting or tax records. Learn more about inventory records >>
What must be stated on the e-shop
Legislation defines what information you must publish on your e-shop so customers can review it before making a purchase.
Seller’s information obligation
The seller’s information obligation defines what must be published on your e-shop. Compliance is monitored by the Czech Trade Inspection Authority. It is mainly regulated by Act No. 634/1992 Coll., on Consumer Protection and the Civil Code.
What must you publish?
- Name and contact details (business name, address, ID number, VAT ID, register entry, supervisory authority)
- Information about customer rights
- Right to withdraw from the contract within 14 days without giving a reason
- Information about complaints and warranty
- Information about out-of-court dispute resolution
- Costs of distance communication (e.g., premium-rate phone lines)
- Delivery costs
- Payment, delivery, or performance methods
- Name and main characteristics of goods or services, including age restrictions; price including all taxes and fees and its validity period
We discussed these points in more detail in the article Do not neglect your e-shop terms and conditions. We know how to do it.
Due to the complexity of the topic and the risk of high fines for non-compliance, we recommend consulting legal matters related to your e-shop with professionals. This article is not intended to replace legal advice and may not be a complete overview of all legislative requirements for operating an e-shop.