Czech businesses will once again be required to report sales electronically after lawmakers approved the reintroduction of the country's electronic sales registration system (EET). The revamped scheme is scheduled to take effect on Jan. 1, 2027, following a one-month pilot phase before full implementation.

The renewed system will primarily affect small businesses, restaurants, retailers, and service providers across Czechia, while consumers are expected to see a greater share of transactions processed through digital reporting.

The legislation must still be approved by the Senate and signed by President Petr Pavel before becoming law.

EET 2.0 aims to reduce red tape

The revised framework, referred to as EET 2.0, is designed to be less burdensome than the original system introduced in 2016. Businesses will no longer be required to issue printed receipts in all cases, and the government says the updated platform will significantly reduce compliance costs.

Finance Minister Alena Schillerová said the overhaul would help curb the shadow economy while creating a fairer tax environment.

“EET 2.0 represents a modern and significantly simplified sales reporting system that will help reduce the shadow economy, improve tax collection, and ensure a level playing field for businesses,” Schillerová told lawmakers.

Under the new rules, businesses will also report cashless transactions. However, entrepreneurs operating under the first tier of the flat-rate tax regime with annual revenues below CZK 1 million will be exempt. The Finance Ministry estimates the system could generate around CZK 14 billion (€560 million) in additional public revenue each year.

The original EET system was suspended during the COVID-19 pandemic and formally abolished in 2023. Members of the Civic Democratic Party (ODS) argued that existing tax-control mechanisms and the widespread use of electronic payments already provide tax authorities with sufficient oversight of business transactions.

Source:

Expats.cz, https://www.expats.cz/czech-news/article/czechia-approves-return-of-eet-electronic-sales-tracking-to-resume-in-2027