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The Constitutional Court of the Czech Republic has reviewed the requirement on the constitutionality of the law on Electronic record of sales („zákon o EET”). The final decision of the court is that the law as a tool for regulating sales control is overall good. On the other hand, it has been concluded that there are some flaws in the law concerning the privacy of citizens and that attention must be paid to the content of the invoice that is a public document.

The majority of the controversy raises the decision that the following two groups for fiscalization (the third one should begin in March 2018) should be postponed until certain paragraphs of the EET law comply with the other existing legislation. This has cheered taxpayers from Group 3 and 4. Delay is not going to be short one, counting on the slow rate of judiciary; and some taxpayer practicing some special activities can expect to be permanently exempt. EET law advocates, such as Prime Minister Babis, are pleased with this decision, arguing that the verdict is a confirmation of the justification of the EET law and the great effort he made to get the law out. Although the opposition failed to fully suspend the EET, the postponement is presented as its major success.

The biggest losers are POS vendors who expect higher profits in the next phases. Taxpayers from the first 2 groups are existing POS users, even before fiscalization, main service by vendors was the adaptation of existing POS to make it compliant. The remaining groups involve a larger number of taxpayers, many of whom do not use cash register or POS at all. Vendors expected larger profit in phase 3 and 4. Vendors have invested a lot in order to be ready for the next start in March. Now they have to wait, and for how long it’s not yet known.

One can conclude that energy spent on the political battlefield to introduce EET law in the first place has resulted in failure to make a technically sound legislation in conformity with other laws. The first and second fiscalization phases were implemented very successfully. The number of issued invoices per month is around 300 millions. The first two rounds of the fiscal lottery were very popular with the use of 11-15 million invoices eligible for the drawing.

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