The planned renewal of electronic sales registration brings fundamental changes that are expected to affect the business environment and tax collection in the Czech Republic. The modernised version of the system, referred to as EET 2.0, was presented by Finance Minister Alena Schillerová. According to her, the new model should respond to technological developments and experience from previous years.
The new system is due to start operating in January next year, with the first month running on a pilot and voluntary basis. This will give businesses time to familiarise themselves with the rules and technical workings of the system. The draft law has now been prepared by the Ministry of Finance of the Czech Republic and is being submitted for comments. The aim of the amendments is to create a simpler and less administratively demanding instrument for sales registration.
EET 2.0 is to differ from the original system mainly by simplifying the recorded data and making wider use of modern payment methods. The records will cover cash payments, card payments or QR payments made during personal contact with the customer. In contrast, invoices or online transactions between accounts without direct contact with the customer will not be subject to recording.
Another major change is the abolition of the obligation to print paper receipts. The entrepreneur will issue these only upon customer request. In addition, the system will not track specific items of purchase, but only the basic details of the transaction, such as the identification of the business, time, place and amount. According to the ministry, the new form of sales registration is intended to contribute to a fairer business environment and more efficient tax collection. The state estimates the fiscal benefits of the system at CZK 14-15 billion a year in VAT and income tax alone.
The new model also provides for a mode called EET OFF, which will allow the smallest entrepreneurs not to use the sales registration. The exemption will apply, for example, to entrepreneurs in the first flat-rate tax band with annual revenues of up to CZK 1 million or those who pay a monthly flat-rate tax of CZK 1,500. The registration will also not apply to certain specific areas, such as banking, air transport or vending machines.
Other tax measures being prepared by the Czech Government are also part of the broader changes. The cabinet plans to restore the tuition fee and tax breaks for working students as part of a pro-family package. The ministry is also preparing to reduce VAT from 21 to 12 per cent on soft drinks served in catering establishments when consumed on the premises.
The new form of the EET thus represents a combination of digitalization of the state administration, an effort to reduce the grey economy and an attempt to ease the tax burden on selected groups of entrepreneurs and employees. The final form of the system will be decided by the legislative process in the coming months.
gnews.cz - GH
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