Transport services providers, including the app-based “ride-sharing”
company Uber, will have to register their revenue using electronic cash
registers as of this autumn. Uber CEO Alexei Stakh signed a new tax
memorandum on Thursday committing the company to using the system, known by
its Czech acronym EET. However, only new Uber drivers will be required to
In April, Uber also committed to operating a licensed service in the Czech Republic, thereby putting the company on an equal footing with traditional taxi companies, as its drivers will have to register with the appropriate authorities and have their earnings taxed.
The law on electronic cash registers introduced by the outgoing government
has had a positive impact on state finances, Finance Minister Ivan Pilný
said at a press briefing in Prague on Friday. He said that since the law on
compulsory electronic cash registers was introduced in January, the state
had collected an additional 4.1 billion crowns in taxes, a figure that
could rise to 5 billion by the end of the year.
Over 160,000 entrepreneurs registered with the ministry in the first year and another 300,000 will start delivering electronic records of their earnings in 2018.
The centre-right parties have criticized the move saying it will put many small entrepreneurs out of business. According to the Czech Association of Hotels and Restaurants over 3,000 restaurants closed their doors following its introduction. The chairman of the association Václav Stárek told the ctk news agency that while the number was slightly higher than in previous years it was not a dramatic decline.
The Ministry of Finance is set to launch a receipt lottery in October, the daily Hospodářské noviny reported on Tuesday. The lottery, which aims to encourage consumer assistance in fighting tax evasion, was originally to be launched in mid-September, but preparations took longer than expected. The lottery is set to distribute up to 65 million crowns a year in winnings.
Financial Administration officials have carried out over 55,000 checks
since the introduction of electronic cash registers, a measure introduced
by former Finance Minister Andrej Babiš to counter the grey economy and
The authorities have issued nearly 1,700 fines to the tune of 15 million crowns. Eight businesses were forced to close down for failing to follow the rules. The first phase of the four-stage measure was introduced in December 2016.
The law on electronic cash registers which is being introduced in several phases is likely to cause problems at upcoming summer music festivals. Many stall-owners who previous provided refreshments at these events are concerned about reprisals and are seeking ways to avoid having to issue receipts, while others have cancelled attendance. The organizers say they fear long queues and poor service.
The center-right Civic Democratic Party outlined its election program for October's general election and selected election leaders for individual regions at a conference in Prague on Saturday. Party leader Petr Fiala highlighted the party's intention to lower taxes and boost wage growth. The Civic Democrats have vowed to seek an exemption from euro adoption, promised to overturn the smoking ban due to go into effect at the end of May and scrap the law on electronic tax registers. According to the most recent polls the party would get 7.5 percent of the vote.
Farmers’ markets, which have proven to be hugely popular across the Czech Republic could be hit by the recent introduction of the new electronic cash registers system (EET), designed to clamp down on areas of the grey economy and to bring in more tax revenues. According to Czech news site iDnes, some stall owners have decided to yank their wares because of the EET. Farmers’ products will come under the third wave of the system, beginning in March of next year.