Trade Within the EU Is Neither "Import" nor "Export" in Customs Terms
Food acquired from another EU Member State is not, in legal terms, considered imported, and dispatching it to another Member State is not export in the customs sense. Trade between Member States is governed by the free movement of goods — one of the four fundamental freedoms of the internal market. To move goods across borders, invoices or other proof of purchase generally suffice; no customs duty is paid and no customs procedure takes place.
The principle of the free movement of goods and mutual recognition applies not only to EU countries but to the entire European Economic Area, meaning Norway, Liechtenstein, and Iceland as well.
Harmonised and Non-Harmonised Spheres
The commodity requirements a food must meet depend on whether it falls within the harmonised or the non-harmonised sphere:
- Harmonised sphere — an EU legal act exists for the food in question. The food must then meet the requirements set out in that act, which are uniform across the whole EU.
- Non-harmonised sphere — no EU act exists for the food. In this case, the requirements of the national legislation of the Member State where the food was produced or first placed on the market within the EU must be met.
The non-harmonised sphere is linked to the principle of mutual recognition, governed by Section 11a of Act No. 110/1997 Coll., on Foodstuffs and Tobacco Products. Under this principle, food lawfully produced and placed on the market in one Member State may not be refused in another Member State provided it is safe. So if, for example, Czech bread meets the requirements of the Czech commodity decree, it cannot be refused in another Member State merely because different national rules apply there.
Registration with the Supervisory Authority Applies Here Too
Even though this is trade within the EU, the food business operator has a registration (notification) duty under Section 3 of the Act on Foodstuffs. A business that places food from another Member State on the Czech market is its first seller established in the Czech Republic and bears responsibility for compliance. Registration is filed with the locally competent inspectorate according to the nature of the food:
- the Czech Agriculture and Food Inspection Authority (SZPI) — food of non-animal origin,
- the State Veterinary Administration (SVS) — food of animal origin.
Failure to comply with the notification duty is an offence carrying a sanction of up to hundreds of thousands, or even a million, Czech crowns, just as with imports from third countries. The business must also hold the appropriate trade licence.
Labelling in Intra-EU Trade
For goods from another Member State too, food intended for the Czech consumer must be properly labelled in the Czech language and meet the requirements of Regulation (EU) No 1169/2011 on the provision of food information to consumers. Mandatory particulars include, in particular:
- the name of the food,
- the list of ingredients and highlighted allergens,
- nutrition information,
- net quantity,
- the date of minimum durability or the use-by date,
- storage conditions, where relevant,
- identification of the responsible operator established in the EU.
The difference from importing from third countries is that the responsible operator stated on the packaging may be the manufacturer from another Member State — it need not necessarily be the Czech distributor. Even so, it must be ensured that all mandatory information appears in Czech and is intelligible to the consumer.
VAT and Place of Supply
While customs duty falls away in intra-EU trade, the question of VAT remains. The obligation to declare and pay VAT depends on the so-called place of supply — that is, the country where the goods are sold to the final customer. In simplified terms: if a Czech company buys goods from a supplier in another Member State and sells them in the Czech Republic, it pays VAT domestically (if it is a VAT payer). Setting up the tax regime is best discussed with a tax adviser, as it varies according to the nature of the transaction, the status of the customer, and whether the goods are supplied to a final consumer or between businesses.
Statistical Reporting Duty (Intrastat)
A specific obligation in intra-EU trade is the statistical reporting of the movement of goods — the Intrastat system. If the value of goods you dispatch or receive within the EU exceeds the threshold set for the given year, a reporting duty arises.
Each Member State sets its own thresholds and updates them annually, and a different value may apply to arrivals (imports) than to dispatches (exports). The monthly declaration includes, among other things, the eight-digit product code under the Combined Nomenclature and the value of the goods. Current thresholds for the given calendar year must be verified, as they change.
Exporting to Another Member State
When exporting your own goods to another Member State, the same principles apply in mirror image. Thanks to mutual recognition, your safe food that meets Czech rules may not be refused in another Member State — but with regard to both the harmonised and non-harmonised spheres, it is advisable to verify whether the destination country applies different national requirements (for example on labelling in the national language or on specific commodity parameters). Before entering a particular market, it therefore pays to check the local rules.
Summary: Checklist for Trading Food Within the EU
- Be aware that acquisition from another Member State is not import in the customs sense — customs duty and customs clearance fall away.
- Determine whether the food falls within the harmonised or the non-harmonised sphere, and make use of the principle of mutual recognition.
- Register the activity with SZPI, or SVS, depending on the nature of the food.
- Ensure labelling in the Czech language with all mandatory particulars under Regulation (EU) No 1169/2011.
- Address the correct VAT regime according to the place of supply.
- Verify whether an Intrastat reporting duty arises and keep an eye on the thresholds.
- When exporting, check any differing national requirements of the destination country.
Trading food within the EU is administratively simpler than importing from third countries, yet it still combines food law, tax rules, and statistical reporting. If you are planning to start supplies from another Member State or, conversely, to expand your range abroad, we recommend a legal assessment of the specific commodity and setting up the contractual and tax documentation in advance. We will be glad to help you with the preparation.
This article is for informational purposes only and does not replace individual legal advice. The legal framework evolves; we recommend verifying the current wording of the regulations and thresholds before a specific transaction.
