EET 2.0 in the Czech Republic: Presentation of the New Tax System
The Ministry of Finance’s Project
The Czech Ministry of Finance has presented EET 2.0, a modernized system for sales registration scheduled to begin on January 1, 2027, with a voluntary pilot phase during the first month. This initiative builds on the experience of the previous system while reflecting recent technological developments, particularly in digital payments. Above all, the reform aims to create a more efficient framework for monitoring transactions and improving tax transparency.
Fiscal and Administrative Objectives
According to Finance Minister Alena Schillerová, EET 2.0 aims to make tax control more efficient, support honest entrepreneurs, and improve tax collection. The government expects an increase in tax revenues of between 14 and 15 billion crowns annually through a more accurate and modern sales registration system.
How EET 2.0 Works and Its Technological Innovations
Simplified Sales Registration
Compared with the earlier model, EET 2.0 introduces a simpler approach. Only essential data will be recorded, including taxpayer identification, date and time of sale, serial number, place of transaction, and total amount. Furthermore, receipts will no longer be automatically printed; they will be issued only if requested by the customer. Consequently, administrative and operational burdens for businesses should decrease.
Payments Subject to Tax Control
Sales registration will apply to payments made during direct contact between customer and seller, including cash, card payments, QR codes, and other common payment methods. Invoices and online account-to-account transactions without physical contact will not be subject to registration.
Use of Technology and Reduced Administrative Burden
The system will be compatible with equipment previously used under the original EET. In addition, the tax administration plans to offer a free solution for mobile phones, tablets, and computers. Therefore, smaller entrepreneurs should face lower technical costs when complying with the new system.
EET OFF Regime: An Option for Small Entrepreneurs
What Is the EET OFF Regime?
The proposal introduces the EET OFF regime, designed for small Czech entrepreneurs who choose not to register their sales. Eligibility is limited to businesses participating in the first flat-rate tax band with annual income up to one million crowns. This option offers a simplified alternative while still maintaining fiscal oversight.
Economic Conditions and Fiscal Stability
Entrepreneurs under EET OFF will pay a fixed monthly tax of approximately 1,500 CZK, in addition to mandatory social and health insurance contributions. If the income threshold is exceeded, the regime remains valid until the end of the tax period, ensuring fiscal stability and predictability.
Tax Credit and Technology Discount
To support adaptation, the proposal includes a 5,000 CZK tax relief in the form of a tax credit for purchasing a sales registration device. This measure should ease the transition, particularly for small businesses adopting new technology.
Tax Relief Measures and Economic Benefits
Package of Tax Relief Measures
EET 2.0 is accompanied by several tax relief measures, including the restoration of tax benefits for families and working students, the removal of limits on employee benefits exemptions, and a reduction of VAT to 12 percent on non-alcoholic beverages served in catering services.
Tip Exemption and Combating the Shadow Economy
Another significant measure concerns voluntary tips in the hospitality sector. These tips will be exempt from taxes and insurance contributions up to 7 percent of a restaurant’s monthly sales. Consequently, part of workers’ income that previously remained unofficial may become formally recognized.
Expected Impact on Businesses and the Tax System
Ultimately, the Ministry of Finance expects EET 2.0 to enhance fiscal transparency and strengthen tax control across the Czech Republic. Moreover, the combination of technology, tax relief, simplified registration, and targeted benefits is intended to create a fairer and more sustainable business environment for entrepreneurs and employees alike.
Sources
AI Image
