Cross-Border Provision of Services
13. 5. 2014
The cross-border provision of services is based on the freedom of movement of services. It introduces the right of businesses and entrepreneurs from any EU member state to provide services in the territory of another (host) member state, on a temporary and/or occasional basis, without having to settle/establish a business in the host country.
In order to provide cross-border services in the Czech Republic you should have a valid permit/license for the provision of these services in your home country. If this is the case, the only condition for providing your services in the Czech Republic is in most cases to notify the relevant Czech authority. In case your business is not regulated, the notification is not necassary.
There is no universal definition of "temporary" and "occasional" in the context of cross-border services provision and thus it is necessary to proceed on a case-by-case basis. The factors to be taken into consideration are the duration, regularity, frequency and continuity of providing the service in the host state.
A necessary pre-condition is that the provider is also offering the service in his country of origin where he is established. Typical examples of the cross-border provision of services include construction services (even lasting for several years), the provision of IT and consulting services.
Providers can't provide cross-border services on a regular basis, for example one day each week or one week each month. Services tied to a particular place (e.g. the operation of a restaurant, a hotel, a hairdressing shop, etc.) in general cannot be provided in the cross-border mode as well. As a general rule, if a company or an entrepreneur becomes integrated in the economy of the host state, including the acquisition of customers in the host country, he has to establish a business there.
Cross-border services can basically be provided in two ways: either by self-employed persons/freelancers or by the employees of a company (posting of workers). Each mode is subject to different conditions, which are explained in detail in the respective sections.