Setting Up an Online Store: Legal Requirements and Checklist
Selling online is one of the most accessible ways to start a business. But between the idea and the first parcel you ship, there are dozens of legal requirements to meet. Failing to comply can result in fines from the Czech Trade Inspection Authority, the Office for Personal Data Protection, or the Trade Licensing Authority. This guide walks you through all the key obligations, and at the end you'll find a clear checklist so nothing slips through the cracks.
Who this article is for
This article is aimed at first-time online retailers who want to sell goods to end customers (B2C) in the Czech Republic. We focus on operating as a sole trader (OSVČ), but most of the obligations apply equally to online stores run as a limited liability company (s.r.o.). All information is based on legislation in force as of February 2026.
Trade License for an Online Store
The first step toward running a legitimate online store is obtaining a trade license. Without one, you risk penalties for operating a business without authorization.
What type of trade license do you need
Running an online store falls under a free trade license — specifically trade activity no. 48, "Wholesale and Retail Trade." A free trade license requires no professional qualifications or prior experience. You simply need to meet the general conditions:
- Be at least 18 years old
- Have full legal capacity
- Have a clean criminal record — no final conviction for an intentional criminal offense related to business activity
How to register your trade license
📋How to obtain a trade license for an online store
- Prepare your documents — your national ID card, and if you are not a Czech citizen, a criminal record extract. The administrative fee is 1,000 Kč for in-person applications, or 800 Kč when applying electronically via the Citizen Portal.
- Visit a trade licensing office or apply online — you can submit your registration at any trade licensing office (known as a CRM — Central Registration Point). At the same time, you can register for income tax, social security, and health insurance all in one place.
- Wait for entry in the trade register — the authority will complete the entry within 5 working days of a complete and correct application. You will receive an extract from the trade register (the old-style "trade license certificate" is no longer issued).
- Register with the tax authority — if you used the CRM, registration happened automatically. Otherwise, you are required to register within 15 days of starting your activity at the relevant tax office.
Special licenses for specific goods
Selling certain types of goods requires a restricted or licensed trade authorization. This applies in particular to:
- Food and food supplements — conditions are set by the Food Act and related regulations; for some categories, you will need to register with the State Agriculture and Food Inspection Authority
- Medicinal products and medical devices — regulated by the State Institute for Drug Control
- Weapons, ammunition, and pyrotechnics — licensed trade
- Alcohol and tobacco products — licensed trade + obligations under excise duty legislation
Before you start selling, check whether your products require any special authorization.
Sole trader (OSVČ) or limited company (s.r.o.)?
Most first-time online retailers opt to operate as a sole trader (OSVČ) due to the simplicity and lower costs. Here's a comparison of both options:
📊OSVČ vs. s.r.o. for an online store
Mandatory Information on Your Online Store
The Consumer Protection Act (No. 634/1992 Coll.) and the Civil Code (No. 89/2012 Coll.) require you to display a range of information on your online store. Failing to do so is one of the most common reasons for fines issued by the Czech Trade Inspection Authority.
Identifying the seller
Your online store must clearly display:
- Business name or full name of the operator
- Company registration number (IČO)
- VAT identification number (DIČ), if you are a VAT payer
- Registered address or place of business
- Contact details — email address and phone number
- Trade register entry — a link or entry number
- Details of the relevant trade licensing authority (supervisory body)
Product and pricing information
For each product, you must display:
- Main product characteristics — to the extent appropriate to the communication method and nature of the goods
- Total price including VAT and all additional charges
- Delivery costs — or, if these cannot be calculated in advance, a notice that additional charges may apply
- Payment and delivery methods
- For discounted items — the lowest price charged in the previous 30 days (the so-called Omnibus Directive, in effect since 6 January 2023)
Omnibus Directive: watch out when displaying discounts
Since 2023, whenever you show a discounted price, you must also display the lowest price at which the item was sold in the 30 days prior to the discount. Violations can result in a fine of up to 5,000,000 Kč from the Czech Trade Inspection Authority. This obligation applies to Black Friday promotions, seasonal sales, and similar events.
Pre-contractual obligations
Before a customer completes their order, you must provide them with:
- The total order price including delivery costs
- Information about the right to withdraw from the contract within 14 days
- The cost of returning goods (if this is borne by the consumer)
- Information about out-of-court dispute resolution
Terms and Conditions for Your Online Store
Your terms and conditions (T&Cs) are the core legal document of any online store. They must be accessible to the customer before completing the order, and you must also send them by email together with the order confirmation.
What your terms and conditions must include
📋Minimum content of online store terms and conditions
- Seller identification — name/company name, company registration number, address, contact details, trade register entry
- Order process description — how an order is placed and when the contract is concluded
- Prices and payment terms — currency, payment methods, payment deadlines
- Delivery terms — shipping methods, delivery timeframes, costs
- Right to withdraw from the contract — the 14-day period, a model withdrawal form, and the conditions for returning goods
- Complaints procedure — how to make a complaint, where to send goods, the 30-day resolution deadline
- Warranty terms — information about statutory rights for defective goods
- Data protection — a link to a separate privacy policy
- Out-of-court dispute resolution — a link to the ODR platform and to ČOI as the relevant alternative dispute resolution body
- Final provisions — governing law, effective date, contract archiving
Obligation to send T&Cs by email
Since 2023, the amended Civil Code requires you to send the customer your terms and conditions by email together with the order confirmation. A link to the page is not sufficient — the T&Cs must be included as an attachment or directly in the body of the email. Failure to comply can render any provisions referenced in the T&Cs unenforceable.
Right of Withdrawal and Complaints
These two areas are the most common sources of disputes between online stores and customers.
Withdrawal from contract within 14 days
Under the law, a consumer has the right to withdraw from a contract concluded remotely (i.e., via an online store) without giving any reason within 14 days of receiving the goods. As the seller, you must:
- Provide the customer with a model withdrawal form
- After receiving the withdrawal notice, refund all payments received, including the cost of the cheapest delivery option you offered, within 14 days
- You may withhold the refund until you have received the goods back, or until the customer provides proof of dispatch
Exceptions to the right of withdrawal — the customer cannot withdraw for:
- Goods made to the customer's specifications (custom orders)
- Goods that deteriorate quickly (perishable food)
- Hygiene goods once the packaging has been opened (cosmetics, underwear)
- Audio/video recordings and software once the packaging has been unsealed
- Newspapers, periodicals, and magazines
Complaints — rights arising from defective goods
A customer may file a complaint about defective goods within 24 months of receiving them. As the seller, you are required to:
- Accept the complaint and issue the customer with a written confirmation of receipt
- Resolve the complaint within 30 days (failure to meet this deadline constitutes a material breach of contract)
- Inform the customer of the outcome of the complaint
Key deadlines for online stores at a glance
| Deadline | Duration | Description | |----------|----------|-------------| | Right of withdrawal | 14 days | From the consumer's receipt of goods | | Refund after withdrawal | 14 days | From the seller's receipt of the withdrawal notice | | Statutory liability for defects | 24 months | From the consumer's receipt of goods | | Complaint resolution | 30 days | From the date the complaint is filed | | Retention of tax documents | At least 5 years | From the end of the relevant tax period |
GDPR and Personal Data Protection
By operating an online store, you automatically become a data controller within the meaning of the General Data Protection Regulation (GDPR). The supervisory authority is the Office for Personal Data Protection.
What data does an online store process
In the course of normal operations, you process at minimum:
- Customer's name and surname
- Delivery address and billing address if different
- Email address and phone number
- Order data — what the customer bought, when, and for how much
- Payment data — bank account number, payment gateway data
- IP address and cookies — collected during website visits
Legal bases for processing
Importantly, for most data processing activities in an online store, you do not need the customer's consent:
📊Legal bases for data processing in an online store
Required GDPR documents
Your online store must publish:
- Privacy Policy — information on what personal data you process, for what purposes, on what legal basis, how long you retain it, and what rights data subjects have
- Cookie information — see the following section
- Form for exercising data subject rights — right of access, rectification, erasure, portability, and objection
Watch out for pre-ticked consent boxes
Pre-ticked checkboxes (e.g., "I consent to the processing of my personal data for marketing purposes") are not valid consent under GDPR. Consent must be active, freely given, informed, and specific. You also cannot make completing an order conditional on consenting to a newsletter.
Cookies and Cookie Banners
The use of cookies on your online store is regulated by Act No. 127/2005 Coll. on Electronic Communications, in conjunction with GDPR. Supervision is carried out by the Office for Personal Data Protection (ÚOOÚ).
Cookie categories
| Category | Examples | Consent required? | |----------|----------|-------------------| | Strictly necessary | Login, shopping cart, security | No | | Preference | Language, currency, display settings | Recommended (depends on implementation) | | Analytical | Google Analytics, Hotjar | Yes | | Marketing | Facebook Pixel, Google Ads, remarketing | Yes |
Requirements for a cookie banner
A properly implemented cookie banner must:
- Appear before analytical and marketing cookies are loaded — no scripts may run in advance
- Offer an equally prominent option to reject cookies as to accept them (the "Reject" button must not be hidden)
- Have no pre-ticked checkboxes — this is a pure opt-in mechanism
- Allow users to close the banner with an X without giving consent
- Allow consent to be withdrawn at any time — a link to cookie settings must remain permanently accessible (typically in the website footer)
Common mistake: cookie walls
A so-called cookie wall — where users cannot access the website without consenting to cookies — is considered by the ÚOOÚ to be incompatible with the principle of freely given consent. Users must be able to access the website content without accepting analytical and marketing cookies.
VAT Registration
When you first launch your online store, you will typically start as a non-VAT payer. The obligation to register arises once you exceed a legally defined turnover threshold.
Two turnover thresholds in 2026
Since 2025, two separate thresholds apply:
| Turnover threshold | When you become a VAT payer | Registration deadline | |--------------------|-----------------------------|-----------------------| | 2,000,000 Kč in a calendar year | From 1 January of the following year | Within 10 working days of establishing that the threshold has been exceeded | | 2,536,500 Kč (100,000 EUR) in any 12-month period | Immediately upon exceeding the threshold | Within 10 working days |
Selling into the EU — watch out for OSS
If you sell goods to end customers in other EU member states, you are required to remit VAT in the customer's country once you exceed a certain sales volume. The unified EU-wide threshold is 10,000 EUR per year (combined across all EU member states). You can simplify your obligations by registering for the One Stop Shop (OSS) regime via the MOJE daně portal. This means you won't need to register for VAT separately in each country.
Out-of-Court Dispute Resolution and the ODR Platform
Every online store selling to consumers in the EU must provide information about out-of-court dispute resolution. You are required to include:
- A link to the ODR (Online Dispute Resolution) platform of the European Commission
- A link to the Czech Trade Inspection Authority as the relevant alternative dispute resolution body for consumer disputes in the Czech Republic
This information must be easy to find on your website — typically in the terms and conditions and in the website footer.
Other Obligations That Are Often Overlooked
Trademarks and copyright
- Do not copy product photos from manufacturers or other online stores without permission
- When using brand names (Nike, Apple, etc.), comply with the manufacturer's guidelines for authorized resellers
- Protect your own texts and photos — consider adding watermarks to product images
Electronic Sales Reporting (EET)
EET was abolished on 1 January 2023. As of 2026, there is no obligation to electronically report sales. However, note that the new government is planning to introduce a so-called EET 2.0, likely from 2027 onwards — keep an eye on updates on the Czech Ministry of Finance website.
Waste legislation and take-back obligations
If you sell electrical equipment, batteries, or goods in packaging, you have obligations under the Waste Act (No. 541/2020 Coll.) and the Packaging Act (No. 477/2001 Coll.):
- Registration with EKO-KOM (or another authorized packaging company) — you are required to track and report the volume of packaging placed on the market
- Take-back of electrical equipment — you must inform customers about the option to return used electrical equipment (in cooperation with collective schemes such as ASEKOL or ELEKTROWIN)
- Take-back of batteries — a similar obligation applies to sellers of batteries and accumulators
Product safety
Goods sold in the Czech Republic must meet safety requirements. Pay particular attention to:
- CE marking — mandatory for a wide range of products (electronics, toys, personal protective equipment)
- Toys — must comply with strict safety standards (EU Toy Safety Directive)
- Textiles — mandatory labeling of material composition
- Cosmetics — registration in the European CPNP portal
Complete Checklist for Setting Up an Online Store
📋Checklist: legal obligations for an online store in the Czech Republic
- Trade license — register a free trade license (activity no. 48) at the trade licensing office or online
- Registration with the tax authority — either via the CRM or independently within 15 days of starting your activity
- Registration with the Czech Social Security Administration (ČSSZ) and health insurer — notify them of the start of self-employment within 8 days
- Terms and conditions — covering all 10+ statutory requirements (see above)
- Complaints procedure — a clear description of the complaints process, timelines, and conditions
- Privacy policy — GDPR documentation published on your website
- Cookie banner — a proper opt-in mechanism for analytical and marketing cookies
- Mandatory website information — seller identification, prices including VAT, delivery costs, right of withdrawal
- Model withdrawal form — available for download on the website
- Link to the ODR platform and ČOI — out-of-court dispute resolution
- EKO-KOM registration — if you sell goods in packaging
- Business bank account — recommended for keeping finances organized
- Liability insurance — consider insurance to cover damage caused by defective products
- Income and expense records — bookkeeping from day one of your business
The Most Common Mistakes Made by First-Time Online Retailers
Based on inspections carried out by the Czech Trade Inspection Authority and practical experience, we've identified the most common legal mistakes:
1. Missing or incomplete terms and conditions
Many beginners copy terms and conditions from another online store. This is not only unethical, but also legally risky — the conditions may not be appropriate for your type of goods and business. Invest in custom T&Cs tailored to your specific store.
2. Incorrectly displayed prices and delivery costs
Before confirming their order, customers must see the total price including VAT and delivery costs. Hidden charges that only appear at checkout are contrary to the law.
3. Ignoring the right of withdrawal
You cannot deny a customer the right to withdraw from the contract (except for the categories of goods specifically excluded by law). You cannot set a withdrawal period shorter than 14 days, nor can you require goods to be returned in their original packaging as a condition for issuing a refund.
4. Cookie banners with only an "Accept" button
A cookie banner that only offers an "Accept all" button with no option to decline does not comply with current legislation. Users must have a genuine and equally easy option to reject cookies.
5. Missing model withdrawal form
A model withdrawal form must be accessible to the customer — ideally available to download on the website and included in the terms and conditions.
What Does the Legal Side of Setting Up an Online Store Cost
Indicative costs for the legal side of an online store (OSVČ)
| Item | One-off cost | Recurring cost | |------|--------------|----------------| | Trade license registration | 800–1,000 Kč | — | | Terms and conditions (lawyer) | 5,000–15,000 Kč | Updates 2,000–5,000 Kč/year | | GDPR documentation (lawyer) | 3,000–10,000 Kč | — | | Cookie banner (third-party solution) | 0–5,000 Kč | 0–2,000 Kč/year | | EKO-KOM registration | 0 Kč | Approx. 300–2,000 Kč/year (depending on volume) | | Total (approximate) | 9,000–31,000 Kč | 2,300–9,000 Kč/year |
Note: Prices are indicative and vary by provider. Online legal document generators are also available at lower cost, but quality may vary.
Frequently Asked Questions (FAQ)
Can I run an online store without a trade license?
No. Selling goods online is a business activity and requires a trade license. The only exception is the occasional sale of your own unwanted personal items (e.g., on Vinted or Bazos), provided it does not constitute a sustained activity carried out for profit.
Do I need a data mailbox (datová schránka) for my online store?
Since 2023, all sole traders (OSVČ) have been assigned a data mailbox automatically. You don't need to apply for one, but you should activate it and learn how to use it — most communication with public authorities now takes place electronically.
Does my online store need an SSL certificate?
The law does not explicitly require one, but processing personal data (such as orders and registrations) without an encrypted connection (HTTPS) conflicts with GDPR's requirement for appropriate technical security measures. In practice, virtually all e-commerce platforms provide SSL certificates free of charge.
What if I also sell on a marketplace (Amazon, Allegro)?
Even when selling through a marketplace, you remain the seller and retain all associated obligations. The marketplace may fulfill some of these on your behalf (for example, providing information about the right of withdrawal), but you remain responsible for the goods and for handling complaints.
Do I need a physical business premises?
For a free trade license operating entirely online, you do not need a traditional physical premises. Your registered place of business can be your permanent home address. However, if you set up a warehouse, a collection point, or an office, you must notify the trade licensing office and register it as a business premises.
What fines can be imposed for non-compliance?
| Violation | Supervisory authority | Maximum fine | |-----------|----------------------|--------------| | Missing mandatory information | ČOI | 5,000,000 Kč | | Unfair commercial practices | ČOI | 5,000,000 Kč | | GDPR violations | ÚOOÚ | Up to €20 million or 4% of turnover | | Operating without a license | Trade Licensing Authority | 750,000 Kč | | Violations of the Packaging Act | ČIŽP | 10,000,000 Kč |
Leave Your Online Store's Bookkeeping to DokladBot
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Try DokladBot for free at dokladbot.cz — your AI accounting assistant that understands the needs of online retailers.
Useful Links to Official Sources
- Czech Trade Inspection Authority (ČOI) — enforcement of consumer rights
- Ministry of Industry and Trade (MPO) — information on trade licensing
- Office for Personal Data Protection (ÚOOÚ) — GDPR and personal data protection
- Czech Financial Administration — tax obligations, VAT, registration
- ODR Platform — out-of-court dispute resolution — mandatory link for online stores
- Citizen Portal — electronic submission of trade license applications
This article is for informational purposes only and does not replace professional legal advice. Legislation is subject to change — before setting up an online store, we recommend verifying the current wording of the relevant laws using the official sources listed above. Information is accurate as of February 2026.
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