Czech Parliament Approves the Return of Electronic Sales Registration
The Czech Chamber of Deputies has approved legislation to reintroduce the country’s electronic sales registration system, known as EET, from next year. The proposal must still be reviewed by the Senate and signed by the president before becoming law. The government describes the new EET as a modernised system designed to reduce bureaucracy, remove the requirement to print paper receipts and create fairer conditions for businesses. Unlike the previous version, the system will also record contactless and other cashless payments made directly between customers and businesses, while remote payments, including online purchases, will remain outside its scope. The Ministry of Finance estimates that the renewed electronic sales registration could generate more than CZK 14 billion annually across public budgets.
Tax Changes, Exemptions and Support for Employees
The legislation introduces several additional tax measures alongside the return of EET. Families with children will again be able to claim a kindergarten tax allowance, while students will regain an annual tax discount of CZK 4,020. Non-alcoholic drinks served in restaurants will move to the reduced 12 percent VAT rate, aligning them with food services. The law also exempts selected employer-funded healthcare benefits from income tax, including enhanced preventive examinations, diabetes screening for risk groups and cardiovascular risk assessments. Restaurant tips paid to employees will be tax-free up to seven percent of sales. The threshold for taxable income requiring an annual tax return will rise from CZK 50,000 to CZK 100,000. Certain activities, including pre-Christmas fish sales and revenue from public toilets, will be exempt from EET.
Analysts Question the Expected Budget Impact
Economic analysts remain cautious about the government’s revenue forecast. They argue that operating costs, local government allocations and accompanying tax relief measures could significantly reduce the net benefit for the state budget. Some estimates suggest that the final contribution may amount to only several billion crowns. However, analysts generally recognise the system’s potential to improve tax collection, provide faster economic data and reduce unfair competition from businesses that report only part of their revenue. Small entrepreneurs using the flat-tax system and earning up to CZK 1 million annually may choose an exemption from EET, although their monthly flat-tax payment would increase from CZK 100 to CZK 1,500. The legislation also restores tax advantages for still wine offered as a promotional gift worth up to CZK 500.
link: https://www.polylocal.eu/blog/english-9/business-culture-differences-across-europe-eu-27-9
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