In March this year, after exhausting debates, the Government of the Czech Republic adopted a fiscal law “Act on Registration of Sales 112/2016”. See our encyclopaedia for more details.
Delay in official decision did not stop competent revenue departments to work on fiscal processes preparations. For this reason, until today, lot activities had started and accomplished.
| April 4,2016 | Site www.etrzby.cz was launched |
| May 11,2016 | Technical specification including the format and structure of data records and communication interfaces was published |
| Jun 1,2016 | Start of media campaign which covers presentations, conferences, seminars, news announcements, printed brochures and other. |
| Jun 11,2016 | Developers (HW and SW) test environment start (“Playground” ) |
| September 1,2016 | Phone hotline start |
The technical solution requires a device that can communicate electronically via the Internet (PC, tablet, cell-phone, cash register) and have connection upon receipt of payment. It is only the taxpayer’s decision what type of cashier equipment and software he/she chooses to use as long as the obligation to send a data message and issue the receipt is fulfilled.
Following is the phased implementation plan:
| Phase | Start date | To whom it applies |
| 1 | December 1,2016 | Catering and accommodation services (restaurants ,pubs ,pastry shops ,cafes ,fast food ,hotels , guest houses, motels , campsites,…) |
| 2 | March 1, 2017 | retail and wholesale |
| 3 | March 1, 2018 | Other operations (with the exception of Phase 4) |
| 4 | June 1, 2018 | Selected crafts |
All taxpayers must request for Authentication at the start of the first phase. That is a prerequisite for making the first registered sale. Authentications are used to enable access to the EET server when exchanging data messages and receipts.
Registration process consists of verifying taxpayer’s information, including the shop location, upon which taxpayer will receives his/her digital certificate. This certificate should be installed in cash register device or sales application. Registration can be managed by EET portal electronically or personally by visiting one of 201 tax offices across the country.
For some taxpayers applies so called “simplified regime”. What this means is that taxpayer who does not have a continuous Internet access can obtain permission from his local administration to work in a special regime. Taxpayer in “simplified regime” must also deliver fiscal receipt to customer, however this receipt contains his encrypted signature but not tax identification unique code, which must be printed on receipt of the online taxpayers. It is not clear how this affects audit.
VAT rate in hospitality sector will be reduced from 21% to 15 %. The base rate remains for serving alcoholic drinks. It is also proposed to move the VAT rate to 15% for draft beer to support rural pubs.
Tax deduction of up to 5,000 CZK as the contribution for the purchase of new equipment in for of tax relief.
This thorny journey for CZ government came to a successful closure. Czechs embraced one of the most effective ways of fiscalization with EET. Good luck Czechs!
