Cross-border provision of services

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.

The cross-border provision of services means that businesses and entrepreneurs from any EU Member State can provide services on a temporary and/or occasional basis in the territory of another Member State, without having to establish a business in the host country.

You can provide cross-border services in the Czech Republic if you have a valid permit/licence for the provision of these servicesin your home country, and if you arealready offering these services in that country. If this is the case, the only condition for providing your services in the Czech Republic is to notify the relevant Czech authority. If your business is not regulated in the Czech Republic, the notification is not necessary.

There is no all-encompassing EU definition of “temporary” and “occasional,” so assessment of this is on a case-by-case basis. The relevant factors to consider are the duration, regularity, frequency and continuity of providing the service in the host state. In case of uncertainty, it is advisable to consult the Czech trade-licence office in the area where you plan to practice your business activity. Typical examples of the cross-border provision of services include construction services (even lasting for several years), the provision of IT and consulting services, beauty services, etc.

Entrepreneurs are not allowed to 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, etc.) in general cannot be provided cross-border. As a general rule, if you as a company or an entrepreneur become integrated in the economy of the host state, with regular customers, you have to establish a business there.

Examples:

  • An Austrian hairdresser would like to occasionally provide services in the Czech Republic.
  • A German entrepreneur would like to provide temporary consultancy services in the Czech Republic.
  • A Slovak plumber would like to provide sanitary instalment services in the Czech Republic on an irregular basis. 
  • A Polish chef would like to occasionally offer catering services in the Czech Republic.

 

Cross-border services can essentially be provided in two ways: either by self-employed persons/freelancers or by the employees of a company (posting of workers). Each is the subject to different conditions, which are explained in detail in the respective sections.

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.